Rate of inflation more than doubles in one month to 1.5%, ONS says
19 May 2021, 07:09 | Updated: 19 May 2021, 08:08
The rate of inflation has more than doubled in just one month to 1.5 per cent, the Office for National Statistics (ONS) has said.
Consumer Price Index (CPI) inflation rose from 0.7 per cent in March to 1.5 per cent in April, the ONS said.
Higher energy, clothing and motor fuel costs have driven the increase, according to the statistics agency's report.
The ONS also said petrol prices are now at their highest level since January 2020.
On a monthly basis, the CPI rose by 0.6 per cent this April after a 0.3 per cent increase in March. This compares with a fall of 0.2 per cent in April 2020.
The CPI is a measure of consumer price inflation that is used in the government’s target for inflation.
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Grant Fitzner, chief economist at the ONS, said: "Inflation rose in April, mainly due to prices rising this year compared with the falls seen at the start of the pandemic this time last year.
"This was seen most clearly in household utility bills and clothing prices.
"As the price of crude oil continues to rise, this has fed through to the cost of motor fuels, which are now at their highest since January 2020."
Inflation in western economies has surged after a year of disruption caused by the coronavirus pandemic.
Earlier this month, the rate in the US sped up in April as consumer prices lept to 4.2 per cent, the fastest rise since 2008. However, Federal Reserve officials saw the rise as temporary and not likely to influence policy.
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Ano Kuhanathan, sector advisor at Euler Hermes, part of Allianz, said: “We currently estimate pent-up demand could benefit the UK economy by £58bn (€68 billion) in 2021.
"Inflation creeping back up to pre-pandemic levels is unlikely to set many alarm bells ringing for now. That said, businesses will be alive to the more significant inflationary shifts and subsequent opportunities to increase prices that could materialise in the coming months should post-lockdown consumer spending maintain pace.
“Most sectors are experiencing some degree of pricing pressure from rising material costs – stimulated in large part by the ongoing impact of Covid restrictions as well as Brexit-related import challenges at a time when consumer demand is surging.
"Labour shortages are also likely to contribute to wages growing by 2.5 per cent this year. However, even those looking to make up for a dire 2020 will be wary of passing those costs on to spend-happy consumers for the time being as they look to establish or rebuild their market share in the new world order.”
