Sharp rise in UK inflation rates reported

News Article - Wednesday, May 14, 2008

filed under: Business

Britain witnessed a steep increase in consumer inflation during April this year, official figures reveal.

According to data from the Office for National Statistics, UK consumer inflation was driven up last month by soaring food and fuel prices to the highest level in 13 months.

The latest Consumer Prices Index (CPI) for April shows a three per cent annual increase in inflation over the year, up significantly from 2.5 per cent in March and significantly in excess of the two per cent target set by the government.

Analysts are predicting that the latest inflation data, which shows a 0.8 per cent leap in April this year in the CPI, the biggest monthly rise since May 2001, will cause the Bank of England to keep interest rates on hold in the near term.

Economists had forecast that CPI would reach 2.6 per cent last month, but rapid increases in food and oil prices have helped to push up consumer inflation.

Manufacturers have started to pass rising costs of materials on to consumers, adding to concerns about the current economic downturn.

Firms worried about economic conditions can invest in accounts software in order to manage their finances more effectively.

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