Energy and transport costs pushed U.K. inflation back above target last month.
Consumer prices rose 2.1% from a year earlier, ending a three- month spell of inflation below the Bank of England’s 2 percent goal, Office for National Statistics figures published Wednesday show. The figure was slightly below the 2.2% forecast by economists.
The pickup, from 1.9% in March, was driven by the lifting of the government cap on default energy tariffs. Electricity prices jumped 10.9% and gas increased 9.3%, dwarfing increases seen a year earlier.
There was also upward pressure from higher auto-fuel prices, while Easter boosted transport costs, air fares in particular. The four-day vacation began on April 19, three weeks later than it did last year. The largest offsetting factor came from cheaper computer games.
The widely-anticipated inflation spike is expected to prove temporary, however, with the BOE predicting a return to target this month. Core inflation stayed at 1.8%, giving officials breathing space to keep interest rates on hold amid the continuing Brexit deadlock.
Source : Bloomberg