Inflation jumps up higher than expected to 2.7% in April
Cost of living is more expensive as inflation rises to highest rate since 2013. And with wage growth slowing, people will have even less to spend.
Figures published today put the Consumer Prices Index (CPI) rate at 2.7% in April. This is up from 2.3% in March and is the highest rate since 2013. Although the weak pound was expected to result in higher inflation last month, the rate is higher than expected.
The Office for National Statistics (ONS) said that rising airfares as a result of the later Easter dates was one of the main contributors. However, there was a general upwards trend for prices in most categories of goods including food/drink, clothing/footwear and furniture/household goods. The cost of going out is also more expensive as figures show an upwards trend for prices in most services such as eating out, other recreational activities and hotel accommodation.
With wage growth also slowing, consumer spending is likely to be hit in a further sign of a Brexit slowdown in the economy. As politicians continue on the campaign trail, it’s time to ask whether the huge risk of leaving the single market is worth it.
Here’s a chart from the ONS comparing prices for different categories of goods and services in April 2017 and April 2016.
You can see the full report from the ONS at ons.gov.uk.