Article preview: Price inflation is on the rise, with the latest figures showing the official measure now exceeding the Bank of England target. According to the Office for National Statistics, the Consumer Prices Index (CPI) measure of price inflation rose to 2.1% for the year to April. Despite being lower than forecast by economists, it represents a rise from the 1.9% reported a month earlier and means the CPI inflation level is now above the Bank of England target of 2%. Price inflation rose in April mainly due to a short-term and sharp rise in energy prices. This was due to the impact of OFGEM’s price cap on gas and electricity, with prices rising by 10.9% and 9.3% respectively, between March and April this year.
Price inflation rises above target
This 872-word blog post describes the factors behind the latest rise in price inflation, including commentary from the National Institute of Economic and Social Research and British Chambers of Commerce. Written on 23rd May 2019.