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By Les Commons, Laurie Laird and Shaily Mittal
LONDON (MNI) - April consumer price inflation exceeded the Bank of
England's 2.0 target for the first time since December, and the recent
surge in crude oil prices could further elevate inflation in months to
The following are the key points from UK inflation and public
sector borrowing data published Wednesday by the Office for National
- Consumer price inflation rose to an annual rate of 2.1% in April,
falling short of the MNI forecast of a 2.2% rise. One-off factors, such
as rising air fares and the lifting of energy price caps accounted for
the bulk of the increase.
- However, rising crude oil prices could keep inflation above
target in the months to come. Input price inflation accelerated to an
annual rate of 3.8% in April, from 3.2% in March, largely due to oil
- London house prices retreated by an annual rate of 1.9% in March,
although the intially-reported plunge in February was revised upward.
Prices in the capital have not recorded an increase in 13 months, for a
cumulative decline of 5.2%.
- RPI rose by a whopping 1.1% between March and April, the second
biggest monthly increase since 1994, compared to a 0.6% monthly rise in
the CPI, highlighting the disparity between the two measures of
- However, the ONS would not comment on "ongoing discussions"
regarding the use of RPI, saying only that any announcement on
de-coupling the RPI from index-linked assets is unlikely to come before
- Public sector borrowing fell by 43.7% in the 2018/19 fiscal year
to Stg23.5 billion, down from the initially-reported Stg24.7 billion.
However, the dramatic improvement in the government's finances may be
slowing, with April borrowing falling only slightly to Stg5.831 billion
from Stg5.864 billion.