Investing.com - Consumer price inflation (CPI) in the U.K. increased more than expected in April compared to the previous year, official data showed on Tuesday.
In a report, the U.K. Office for National Statistics said the rate of consumer price inflation rose from the year before by a seasonally adjusted 2.7% last month, compared to forecasts for a 2.6% advance and a 2.3% rise in March.
Month-over-month, consumer price inflation rose by 0.5% in April, Analysts had expected CPI to match its March increase of 0.4%.
Core CPI, which excludes food, energy, alcohol, and tobacco costs rose at a seasonally adjusted rate of 2.4% last month, higher than forecasts for a gain of 2.2% and compared to the 1.8% advance registered in March.
The retail price index (RPI) increased 3.5% in April, after rising by 3.1% the previous month. Analysts had expected a gain of 3.4%.
Month-on-month, RPI increased by 0.5% in April, compared to a 0.3% advance in the prior month. The increase was in line with analyst estimates.
Core RPI increased at an annualized rate of 3.8% in April, after rising by 3.4% the previous month. Economists had expected a gain of 3.7%.
Month-on-month, core RPI increased 0.5% last month, compared to March’s 0.3% rise.
The data also showed that the house price index rose 4.1% in April, below forecasts for a gain of 5.4% and following a 5.6% increase a month earlier. March’s data was revised from an initial 5.8% rise.
“Air fares were the main contributors to the increase in the rate in April 2017, although this balanced out a downward effect of similar magnitude in March 2017 and is due to Easter falling later than last year,” the ONS explained in the report.
“Rising prices for clothing, vehicle excise duty and electricity also contributed to the increase in the rate,” it added.
Following the report, GBP/USD traded at 1.2930 from around 1.2935 ahead of the release of the data, EUR/GBP was at 0.8536 from 0.8529 earlier and GBP/JPY changed hands at 146.91, compared to 146.89 previously.
Meanwhile, European stock markets traded mixed. London’s FTSE 100 gained 0.24%, the benchmark Euro Stoxx 50 inched down 0.07%, France's CAC 40 fell 0.48%, while Germany's DAX slipped 0.02%.