UK inflation rate rises to 1.8%

The Consumer Prices Index (CPI) measure of price inflation has risen to 1.8% for the twelve months to April 2014.

The latest figures from the Office for National Statistics (ONS) show this measure of price inflation up from 1.6% for the year to the previous month.

It was pushed higher by rising ferry, flight and petrol prices, as well as the timing of Easter this year.

The rate of price inflation as measured by the Retail Prices Index (RPI) remained unchanged at 2.5% for the year to April, according to the ONS.

What the new CPI inflation figures mean is that the cost of living is once again rising faster wage inflation, after a temporary respite.

The latest figures for average earnings show these up by 1.7% for the year to February, so living costs now slightly exceed pay rises.

It is worth noting however that inflation as measured by CPI remains below the Bank of England 2% inflation target. It is expected to remain below the target for another couple of years, according to comments made recently by Bank of England governor Mark Carney.

It could well be that this rise in inflation is simply a ‘blip’ due to the timing of Easter.

No doubt economists and other observers will be keeping a close eye on the next set of inflation figures to determine whether a trend is developing.

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