Saturday, December 9, 2023

UK CPI eased to 8.7% in April, but core rate climbed to 1992 highs

The year-on-year inflation rate of United Kingdom was located last April in the 8.7%, in front of 10.1% registered in March, as reported on Wednesday by the British National Statistics Office (ONS).

The deceleration The increase in prices in the month of April has thus been less than expected by the consensus of analysts, who anticipated an inflation rate of 8.2%.

The ONS has highlighted that the slowdown in the CPI annual rate it reflected downward contributions from 6 of the 12 divisions, with the largest downward contribution coming from housing and domestic services, while the largest upward variation was observed in leisure and culture.

In the fourth month of 2023, the year-on-year rise in the food price and non-alcoholic beverages was 19%, just one tenth below the previous month’s rise, while housing supplies they became more expensive by 12.3% year-on-year, after the rise of 26.1% in March.

For its part, the underlying CPI, which excludes the volatility of the prices of the energy, food, alcohol and tobaccoaccelerated in April to 6.8%, six tenths more than in March and its highest level since March 1992.

In monthly terms, prices registered in the fourth month of the year a increase of 1.2%, compared to the rise of 2.5% in March.

At their last meeting, the Monetary Policy Committee The Bank of England decided to raise the reference interest rate for its operations by 25 basis points, up to 4.5%, its highest level since the autumn of 2008, thus extending the sequence of increases in the price of money to twelve consecutive meetings.

In its analysis, the Bank of England indicated that it expects the rate of inflation to “drop sharply from April”partly as a consequence of the base effect due to the strong increases registered a year ago.


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