UK CPI softens in April, drops for the 1st time since September

The Office for National Statistics (ONS) said on Thursday, the UK’s consumer prices rose 0.3% in April y/y against a 0.5% increase booked in March. Markets had predicted no growth in the prices in April.

While on monthly basis, CPI rose 0.1%, weaker-than the 0.3% increase expected and a 0.4% increase seen in March. The core inflation rate, which excludes volatile food and fuel costs, dropped more than expected to 1.2% from a 1.5% rate in March. Markets had expected April core inflation at 1.4%.

James Tucker, head of CPI at the ONS noted, "The main reason for the drop was a fall in air fares, which saw a large rise in March due to the timing of the Easter holidays. After five months of inflation gently rising, we have again seen a fall in CPI."