Investing.com UK - Financial Markets Worldwide
🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

U.K. inflation falls to record-low -0.1% in April

Published 19/05/2015, 09:35
© Reuters. U.K. CPI falls to record-low -0.1% in April
GBP/USD
-
EUR/GBP
-
UK100
-
FCHI
-
DE40
-
STOXX50
-

Investing.com - Consumer price inflation in the U.K. fell into negative territory for the first time since records began in April, underlining concerns over deflationary pressures, official data showed on Tuesday.

In a report, the U.K. Office for National Statistics said the rate of consumer price inflation fell to a seasonally adjusted -0.1% last month, from 0.0% in March. Analyst had expected a reading of 0.0%.

Month-over-month, consumer price inflation increased 0.2% in April, missing forecasts for 0.4% and after rising 0.2% in March.

Bank of England Governor Mark Carney will now have to write an open letter to the Chancellor of the Exchequer, George Osborne, as inflation is more than a percentage point below the central bank's target of 2.0%.

Core CPI, which excludes food, energy, alcohol, and tobacco costs rose at a seasonally adjusted rate of 0.8% last month, down from 1.0% in March and below forecasts for a reading of 1.0%.

The retail price index increased 0.9% in April, meeting expectations and unchanged from in March.

The data also showed that the house prices index rose 9.6% in March, beating forecasts for a gain of 7.7% and up from 7.2% in February.

GBP/USD was trading at 1.5539 from around 1.5558 ahead of the release of the data, while EUR/GBP was at 0.7198 from 0.7189 earlier.

Meanwhile, European stock markets held on to gains. London’s FTSE 100 tacked on 0.5%, the EURO STOXX 50 rallied 2%, France's CAC 40 jumped 1.95%, while Germany's DAX surged 2%.

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.