UK inflation decelerates to 2.4% in April, approaching faster to inflation target
|- The UK CPI rose 2.4% in April compared with 2.5% y/y expected by the market.
- The UK core CPI rose 2.1% in April compared with 2.2% y/y expected.
The UK Consumer Price Index (CPI) rose 2.4% over the year in April, decelerating from 2.5% y/y in March while core inflation decelerated to 2.1% y/y from 2.3% in the previous month.
"The largest downward contribution to the change in the rate came from airfares, which were influenced by the timing of Easter," the Office for National Statistics (ONS) said in the report on inflation on Wednesday.
"Rising prices for motor fuels produced the largest, partially offsetting, upward effect," the ONS further noted.
The UK inflation data confirm the Bank of England forecasts in May Inflation Report decelerating towards its 2% inflation target much faster than originally estimated in February and falling off the 3.1% cyclical inflation peak from December last year. The core inflation in April is just one-tenth of a percent off the inflation target.
“Growth—at 0.1% in the first quarter of this year—was much weaker, and inflation—at 2.5% in March—was notably lower than we had projected in February,” the Bank of England Governor Mark Carney said in the opening remarks at the press conference after publishing May Inflation Report on May 10.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.