UK consumer price index rose more than expected in April

According to the report from the Office for National Statistics, the Consumer Prices Index (CPI) rose by 1.5% in the 12 months to April 2021, up from 0.7% growth in March. Economists had expected a 1.4% increase. On a monthly basis, the CPI rose by 0.6% in April 2021, following a 0.3% increase in March 2021.

The Consumer Prices Index including owner occupiers’ housing costs (CPIH) rose by 1.6% in the 12 months to April 2021, up from 1.0% growth to March.

The largest upward contributions to the CPIH 12-month inflation rate came from housing and household services (0.57 percentage points), and transport (0.56 percentage points).

On a monthly basis, the CPIH rose by 0.7% in April 2021, following a 0.2% increase in March 2021.

Rising household utility, clothing, and motor fuel prices made the largest upward contributions to CPIH growth in April 2021; these were partially offset by a large downward contribution from recreation and culture.

As a result of the easing of coronavirus (COVID-19) restrictions, the number of CPIH items identified as unavailable in April 2021 fell to 28, accounting for 3.1% of the basket by weight; we collected a weighted total of 77.2% of comparable coverage collected before the first lockdown (excluding unavailable items).