UK Inflation Rate at Record Low

Consumer prices in Britain fell 0.1 percent year-on-year in April, compared to no change in March, driven by lower food and fuel cost. This is the first time the CPI has fallen since official records began in 1996 and the first time since 1960 based on comparable historic estimates.

Year-on-year, cost of food went down 3.0 percent and transport prices dropped 2.8 percent, driven by a 12.3 percent fall in fuels and lubricants. Additional downward pressures came from furniture and household equipment (-0.5 percent), recreation and culture (-0.4 percent) and clothing and footwear (-0.4 percent).

Upward pressures came from prices of education (10 percent), alcoholic beverages and tobacco (3 percent), restaurants and hotels (2 percent), health (2 percent), communication (1 percent) and housing and utilities (0.5 percent). 

On a monthly basis, the CPI rose 0.2 percent in April, the same pace as in March. The largest downward contributions came from transport services - notably air and sea fares, with the timing of Easter this year a likely factor. 

The core inflation rate which strips out increases in energy, food, alcohol and tobacco, slowed to 0.8 percent in April from 1.0 percent in March.

UK Inflation Rate at Record Low

ONS | Joana Taborda |
5/19/2015 10:32:48 AM