Inflation edges up to 1.8%

Annual inflation as measured by the Consumer Price Index (CPI) rose to 1.8% in April, from 1.6% in March, after consumers paid more to travel over the popular Easter period and petrol prices were higher than the same month last year.

The rate of inflation as measured by the Retail Prices Index (RPI) was unchanged at 2.5%.

Capital Economics economist Samuel Tombs said the rise in the rate was “a blip” due to the timing of Easter. “We continue to think that Consumer Price inflation should ease to as low as 1% by the end of this year and remain comfortably below the 2% target in 2015,” he said.

Source: The Guardian, May 21st 2014, Page 4