UK Inflation Doubles in April

APR CPI +0.6% M/M, +1.5% Y/Y VS +0.7% Y/Y MAR

APR CORE CPI +0.3% M/M, +1.3% Y/Y VS +1.1% Y/Y MAR

APR OUTPUT PPI +0.4% M/M; +3.9% Y/Y VS +1.9% Y/Y MAR

APR INPUT PPI +1.2% M/M; +9.9% Y/Y VS +5.9% Y/Y MAR

• Y/Y CPI jumped to 1.5% in Apr, registering in line with markets forecasts (BBG: 1.5%). This marks the second successive increase, but Apr's rate shows the 21st straight reading below the BOE's 2.0% target.
• Core inflation edged higher to 1.3%, following Mar's uptick to 1.1% and confirming expectations (BBG: 1.3%).
• The largest upward contribution came from housing and HH services such as gas and electricity prices, adding 0.38pp to price growth. Gas prices rose 9.8% between Mar and Apr, while electricity prices were up 9.1%.
• The second largest positive contribution stemmed from clothing and footwear, adding 0.28pp to CPI growth.
• The ONS noted that inflation mainly rose due to base effects as prices rose this year compared to a fall at the same time a year ago.
• Recreation and culture recorded the biggest downward contribution, shaving off 0.26pp from CPI growth and led by games, toys and hobbies.
• Output inflation rose by 3.9% in Apr, marking the fourth consecutive increase and it was largely driven by transport equipment.
• Input inflation surged by 9.9% in Apr, the highest level since Feb 2017 and the fifth positive reading in a row after 10 successive months of decline. Metals and non-metallic minerals led the increase of input PPI.

Source: Office for National Statistics