U.K. April inflation blew past expectations, rising 3.7% vs. 3.5% expected according to The Office For National Statistics.
This was an acceleration from 3.4% in March. The current inflation rate continues to be well above the official target of 2%.
Higher prices for food and for clothing and footwear both also contributed a similar amount to the increase in the CPI rate from March to April.
On the month, consumer price inflation rose by 0.6pc.
The retail price inflation gauge rose to 5.3pc from 4.4pc, versus forecasts for a rise to 4.9pc, the highest since July 1991. That was largely driven by base effects after the sharp fall in mortgage interest rates in 2009 was not repeated in 2010.
The Bank of England hopes that this excessive inflation, above the 2% target, will only be temporary since expected tepid economic growth and high unemployment should keep inflationary forces at bay. The British pound continues to dive against the U.S. dollar, and is down to $1.443.
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