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Consumer prices in the UK shot up in April, hitting a record, official data showed on Wednesday, as pressure continues to mount on the Bank of England to rein in spiralling costs.
Versus the prior month, consumer prices were up 2.5% in April, accelerating from March's 1.1% rise, but fell short of market forecasts - according to FXStreet - of a 2.6% month-on-month rise.
Annually, consumer prices jumped 9.0%, accelerating from March's 7.0% rise, but again was slightly behind market expectations of 9.1%.
It was the fastest measured rate since records began in 1989, and the ONS estimates it was the highest since 1982.
Grant Fitzner, chief economist at the ONS, said: ‘Inflation rose steeply in April, driven by the sharp climb in electricity and gas prices as the higher price cap came into effect. Around three-quarters of the increase in the annual rate this month came from utility bills.’
AvaTrade's Naeem Aslam added: ‘Consumers are struggling to meet their daily needs, and now the pressure is even more on the Bank of England to do more to control inflation. But the fact is that the BOE is walking on a fine line, and it can only do so much to control inflation by increasing the interest rate.’
Turning to producer prices, these were up 1.1% in April, slowing considerably from March 4.6% growth.
Annually, producer prices were up 18.6%, unchanged from the previous month.
The pound was quoted at $1.2460 early Wednesday, soft from $1.2465 at the London equities close on Tuesday.
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