Partly Cloudy

Partly Cloudy

max temp: 12°C

min temp: 9°C

ESTD 1874 Search

UK: Rise in inflation rate predicted

16:34 19 May 2014

Inflation figures are out tomorrow.

Inflation figures are out tomorrow.

Inflation is expected to have risen for the first time in ten months when official figures for April are published tomorrow.

The Consumer Prices Index (CPI) measure of inflation is predicted to have rebounded to 1.8% after hitting a new four-year low of 1.6% the month before.

It will still mean the rise in the cost of living has been at or below the Bank of England’s 2% target for five months in succession - with the rate expected to remain low for some time.

But it could stall hopes for a sustained return to rising real-terms pay, with average earnings only growing at 1.7% according to the latest figures.

Figures published by the Office for National Statistics (ONS) have shown inflation falling for six straight months to March.

Scotiabank economist Alan Clarke said it was expected to have risen in April to reflect flat petrol prices compared to a period last year when they dropped, as well as a later Easter in 2014 making airfares relatively higher.

Howard Archer of IHS Global Insight said the 1.6% reading in March may have marked a low point for inflation though it “seems likely to remain below 2% until the end of the year”.

Oil and gas prices rose by less compared with a year ago while the stronger pound and limited food price increases were keeping it down, he added.

Philip Shaw of Investec expected inflation to remain at 1.6% for April, due to food prices as well as lower water charge increases and more modest alcohol duty hikes in this year’s budget.

Samuel Tombs of Capital Economics said: “While inflation is likely to have risen in April, this will probably be just a blip in its downward trend.”

The Bank of England last week said it expected inflation to remain at or below its 2% target for the next few years, easing pressure on it to hike interest rates.

It has been helped by a 10% rise in the value of sterling since last year, keeping the cost of imported goods down.

Search hundreds of local jobs at Jobs24


Welcome , please leave your message below.

Optional - JPG files only
Optional - MP3 files only
Optional - 3GP, AVI, MOV, MPG or WMV files

Please log in to leave a comment and share your views with other East Anglian Daily Times visitors.

We enable people to post comments with the aim of encouraging open debate.

Only people who register and sign up to our terms and conditions can post comments. These terms and conditions explain our house rules and legal guidelines.

Comments are not edited by East Anglian Daily Times staff prior to publication but may be automatically filtered.

If you have a complaint about a comment please contact us by clicking on the Report This Comment button next to the comment.

Not a member yet?

Register to create your own unique East Anglian Daily Times account for free.

Signing up is free, quick and easy and offers you the chance to add comments, personalise the site with local information picked just for you, and more.

Sign up now

John Dugmore, chief executive of Suffolk Chamber of Commerce, cuts the ribbon to open the new TravelQuest branch in Ipswich, with members of the TravelQuest team.
From left, Vicki Wood, Poppy Brown, John Dugmore, Michelle Thake, Paul Hardwick and Karen Jones.

A Suffolk travel company has expanded with the opening of a second branch.

Terry Hunt, editor of the East Anglian Daily Times, left, and Boshor Ali, chairman of the Bangladeshi Support Centre (BSC), right, with other supporters of the Suffolk BME Business Awards from Ipswich Borough Council, Suffolk Chamber of Commerce, the University of Suffolk and the BSC.	
Photo: Nigel Brown

More than 40 nominations have been received for the inaugural Suffolk BME (Black and Minority Ethnic) Business Awards.

Tim King, group fleet manager at Turners (Soham), left, takes delivery of the firm's newest truck from Eddie Hennessy, regional manager of DAF Trucks UK, representing regional dealership Chassis Cab. 
Photo: Keith Mindham Photography

Suffolk-based logistics company Turners (Soham) Ltd has reported increased annual revenues and profit, and says it is “well placed” for further success despite competitive market conditions.

Sandy Jackson - Mark Westley Photography

British Gas has been forced to backtrack after repeatedly billing a 91-year-old great-grandmother for hundreds of pounds more than she owed.

Ian Thoroughgood, associate director at Grant Thornton in Ipswich, with Jonathan Agar, chief executive of Birketts.

Business advisers firm Grant Thorton is to unveil its 15th “Suffolk Limited” report next month on how the county’s leading businesses have performed over the past year.


Show Job Lists

Most read

Most commented

Topic pages


Newsletter Sign Up

Sign up to the following newsletters:

MyDate24 MyPhotos24