Tuesday, May 17, 2011
High Inflation due to Easter Bunny
The UK Consumer Prices Index (CPI) annual rate of inflation rose to 4.5% in April, up from 4% in March. The rise in CPI was bigger than analysts had forecast and follows a surprise fall in the index last month. CPI is now at its highest level since October 2008. It said the fact that Easter was in April this year but in March last year partly explained the jump in prices. (The Bank of England) still expects inflation to fall back towards the Bank's target rate of 2% towards the end of next year.