UK CPI rises 0.1% year-on-year in April, exits deflation

FXStreet (Mumbai) - The UK Office for National Statistics (ONS) data on Tuesday showed CPI in May rose 0.1% year-on-year, compared to the 0.1% fall seen in April.

As per the ONS report, the largest upward contribution to the change came from transportation services, notably air fares with the timing of Easter in April a likely factor in the movement. There were also significant upward effects from food and motor fuels.

Month-on-month, the CPI remained unchanged at 0.2%. Core CPI printed at 0.9% year-on-year, missing the estimate of 1.0%, but higher than the previous month’s figure of 0.8%.

The report also showed the Retail Prices Index (not a National Statistic) grew by 1.0% in the year ending May 2015, up from 0.9% in from April 2015.

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