Forexpros – Consumer price inflation in the U.K. eased more-than-expected in April, after accelerating for the first time in six months in March, official data showed on Tuesday.
In a report, the U.K. Office for National Statistics said the rate of consumer price inflation eased to 3.0% in April from 3.5% in March.
Analysts had expected U.K. consumer price inflation to ease to 3.1%.
U.K. consumer prices have eased in six of the past seven months. Prices have been on a steady decline since September 2011, when inflation rose to a record-high 5.2%.
Month-over-month, consumer price inflation rose 0.6%, in line with expectations, after rising 0.3% in March.
The rate of inflation remains above the Bank of England’s 2.0% target. The BOE Governor is obliged to write to the Chancellor of the Exchequer every three months that inflation is more than a percentage point above or below its target.
Core CPI, which excludes food, energy, alcohol, and tobacco costs fell more-than-expected to a seasonally adjusted 2.1% in April from 2.5% in March.
According to the ONS, the biggest downward pressure on consumer prices was from airfare, alcohol, clothes and sea transport.
The retail price index eased to 3.5% last month, in line with expectations after rising 3.6% in March.
Following the release of that data, the pound turned lower against the U.S. dollar, with GBP/USD dipping 0.11% to trade at 1.5817.
Meanwhile, European stock markets remained broadly higher. London’s FTSE 100 rose 0.95%, the EURO STOXX 50 gained 0.9%, France’s CAC 40 advanced 0.75%, while Germany’s DAX added 0.95%.
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