CPI rose to an annual rate of 3.0% in April. The largest upward contributions to the 12 month rate came from housing, water, electricity, gas and other fuels, as average gas and electricity bills rose this year, but decreased last year. The second largest contribution came from higher food and beverage prices.
After easing in March, RPI rose to 4.2% in April. The largest contributions came from fuel and light, food and alcoholic beverages, as recent duty changes affected the latter.
Both CPI and headline inflation were higher than forecast, reflecting higher fuel bills and food prices. With commodity prices soaring and energy providers already hinting at further price increases, we have revised up our forecasts. We expect CPI to remain above 3% until the end of the year. Indeed, on more than one occasion the Governor of the Bank of England will have to pen a letter to the Chancellor explaining why CPI has exceeded 3.0%.
Get this month's inflation data
Inflation forecasts are produced on a monthly basis to provide EEF members with the most up to date information to support pay negotiations and business planning.
Get monthly and annual inflation forecasts