Figures published by the Office for National Statistics (ONS) have revealed that the UK’s rate of inflation has risen to 2.7% – up from a rate of 2.3% in March. Inflation is now at its highest level in four years.
The new rate is also above the Bank of England’s 2% target for 2017.
Higher air fares, combined with rising prices for clothing, vehicle excise duty, electricity and food helped to push the rate of inflation to its current level.
The Bank recently warned that inflation is set to peak at ‘just below 3%’ this year. It also suggested that the UK could face a ‘consumer spending squeeze’ following the rise in inflation and with real wages falling.
Commenting on the rise in inflation, Chris Williamson, Chief Business Economist at IHS Markit, said: ‘The timing of Easter looks to have played an important role in pushing inflation higher in year-on-year terms.
‘But sterling’s depreciation since the referendum last June is also clearly a significant factor, lifting prices for imports and likely to pile further upward pressure on consumer prices in coming months.’