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The inflation rate more than doubled in one month to 1.5% | Economic news

The inflation rate has more than doubled in just one month to reach 1.5% in April, posing a price hike challenge for the Bank of England amid a fragile economic recovery from the coronavirus crisis.

The Office for National Statistics (ONS) said the measure of the consumer price index has increased from 0.7% in March.

The increase is due, according to the report, to rising prices for utilities, clothing and fuel.

Diesel pump
Fuel prices were at their highest since January 2020, ONS said

Inflation is rising in Western economies after more than a year of COVID-19[female[feminine disturbance.

The CPI measure was only 0.2% in February.

Financial markets got scared In recent weeks, due to fears, central bank support in times of crisis will be phased out as interest rates are raised from their lowest levels to counter the pace of price increases.

But central bank depositaries, including those in the United States and the Governor of the Bank of England, have signaled that they see the inflationary picture dominated by “transient” – not permanent “price movements.

Instead, they see the prices skewed simply by reverting to the speed of life.

Bank of England chief Andrew Bailey told a peer committee on Tuesday that there was not yet strong evidence that rising prices paid by manufacturers are spilling over into consumer prices.

Any rise in interest rates, aimed at countering rising price movements, would make borrowing more expensive and risk stifling economic growth as the country recovers from its worst annual recession in over 300 years.

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Economy shrank 1.5%, March growth ‘promising’

At an annual rate of 1.5%, the CPI measure is approaching the Bank of England’s 2% target and economists predict it will exceed that level when the …

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This notice was published: 2021-05-19 04:59:00