The Consumer Price Index in the UK surged 1.5% year over year in April, according to the Office for National Statistics press release. The rate was more than double from March’s 0.7% gain year over year.
On a monthly basis, inflation in the UK increased by 0.6% in April 2021, up from a 0.3% rise in March.
Core inflation, excluding energy and food prices, surged 1.3% in April from a year earlier and higher than March’s 1.1% gain.
Inflation gains in April were fueled by rising prices, especially energy, after the lockdown restrictions were removed.
Gas and electricity prices marked a more than 9% gain on a month-on-month basis, while factory input prices increased at a 9.9% annual rate.
UK inflation rise is much lower than that of the US, which gained 4.2% year over year in April.
The Bank of England now expects CPI to rise to about 2.5% in 2021 before falling to its predicted target of 2% by mid-2023.
UK stocks and the pound are currently declining. FTSE 100 is down 0.91%, GBPUSD is down 0.06%.
