Inflation continues to bite as price pressures mount

India's April retail inflation seen easing to three-month low

However, overall inflation declined in March to 5.39 percent from 5.65 percent a year earlier because of a fall in non-food prices.

Inflation was last at 2.7% in September 2013 has not been higher since July that year. These were partially offset by a drop in the price of motor fuels over the month in April.

Inflation rose to its highest level in two-and-a-half years as the rising cost of gasoline, healthcare and education took a toll on consumers.

Last week, the bank reaffirmed its belief that inflation will peak at 2.8% this year, reaching that mark in the fourth quarter.

Factory output prices - a guide to future consumer price pressures - increased 3.6 percent, unchanged from the previous month and above forecasts of a 3.4 percent annual increase in the Reuters poll.

Ulster University economist Esmond Birnie warned that increasing inflation could decrease consumer spending.

With Theresa May's snap election just three weeks away, the figures show the real-term squeeze on millions of workers intensifying as inflation races ahead of average earnings, which are growing at just 2.2% a year.

The weak pound has lift the import prices and likely to pile further upward pressure on consumer prices in coming months, market analysts said.

The CPI including owner occupiers' housing costs (CPIH) hit its highest level since June 2013 at 2.6 per cent in April, up from 2.3 per cent in March.

It comes after March's figure had remained flat month on month, at 2.3 per cent, after a later-than-normal Easter meant a subdued impact from rising airfares.

The core inflation rate increased to 2.4% from 1.8% and was above consensus expectations of 2.2%.

Rising prices for clothing, vehicle excise duty and electricity also played a part in the pick-up in inflation.

United Kingdom inflation resumed its upward march last month, boosted by the price of air fares, clothing and energy.

Scott Bowman, UK economist at Capital Economics, said the latest sharp uptick in the inflation rate was mainly due to a series of one-off factors, such as the timing of Easter.

Ben Brettell, senior economist at Hargreaves Lansdown commented, 'But despite elevated inflation, those hoping for higher interest rates are likely to be in for a long wait. With most economists forecasting more pain to come for United Kingdom consumers, the Bank's balancing job may be about to get tougher.

Related News:

  • Homes of P. Chidambaram and Son Karti Searched in Financial Misconduct Probe

    The CBI says Karti dir-ectly owns Chess Management Services, while he indirectly controls Advantage Strategic Consulting Limited. As per sources, Karti accepted a huge amount of money as bribe in lieu of the favour rendered to the private company.
    Uh oh: Kylie Jenner's new boyf just got arrested

    Uh oh: Kylie Jenner's new boyf just got arrested

    She concealed her raven hair underneath a long peroxide wig and sported a rosy-hued make-up look with bright pink lips. Tyga was spotted with a different girl, who looks somewhat similar to Anitta, just days after his split from Kylie .
    New 2017 Maruti Suzuki Dzire booking opens at Rs 5000

    New 2017 Maruti Suzuki Dzire booking opens at Rs 5000

    The automaker will be launching the third-gen Dzire in India next month, which will be sold to private vehicle buyers. That shows the level of trust and popularity Dzire lineup has built in the country over past 8 years.
  • EU ruling could complicate new trade deals _ including UK's

    EU ruling could complicate new trade deals _ including UK's

    Professor Gavin Barrett, of the Sutherland School of Law at UCD, said the ECJ ruling made securing a trade deal much more hard for the UK.
    Log in, look out: Cyber chaos spreads with workweek's start

    Log in, look out: Cyber chaos spreads with workweek's start

    A group known as Shadow Brokers released Eternal Blue along with a collection of hacking tools from the spy agency last month. The NSA exploit was pared with a so-called worm that can spread with very little action on the part of the computer's user.

    Durant scores 38 points, Warriors beat Jazz to take 3-0 lead

    The Jazz were contesting shots well, and allowed to play some physical defense. and the only one hurting Utah was Kevin Durant. It seized the lead for the first time in the series when it went up 48-47 in the second period, and led 50-49 at half-time.
  • Putin sits down at piano in China, plays Soviet songs

    Putin sits down at piano in China, plays Soviet songs

    The piano performance was no different, with many on social media tweeting about the video and suggesting someone tune the piano. Putin, 64, was a child and the Soviet Union was emerging from the shadow of Stalin, who died in 1953.
    Caps Force Game 7, Beat Pens 5-2

    Caps Force Game 7, Beat Pens 5-2

    The Capitals appeared on the verge of another exit at the hands of the Penguins going into the third period of Game 5. In a race for the puck in front of Braden Holtby , Crosby got swept up in front of John Carlson and Patric Hornqvist.

    #WithFewExceptions Is The Newest Meme To Troll Donald Trump About Russia

    Trump has often said he can't release his tax returns because he is under an IRS audit, although he has yet to show proof of it. Moments later in the interview , he suggested he would never release the returns because he is being audited.
  • Windows Store To Support iTunes Soon

    Windows Store To Support iTunes Soon

    Clipboard syncs your clipboard content across devices over the cloud, allowing you to copy on one device and paste on another. The announcements were made at the Microsoft Build 2017 conference held in Seattle on 10-12 May.
    FTSE 100 hits all time high as oil prices climb

    FTSE 100 hits all time high as oil prices climb

    MSCI's broadest index of Asia-Pacific shares outside Japan closed 0.7 percent higher, while Japan's Nikkei lost 0.07 percent. The FTSE 100 Index reached a mid-session record of 7460.2 in early trading, before closing at an all-time high of 7,454.37.
    Refurbished Galaxy Note7 shows up on retailer's website

    Refurbished Galaxy Note7 shows up on retailer's website

    Note 8 is now highly anticipated with a dual-camera setup on the backside of the smartphone, and rumors have also suggested so. Furthermore, the Galaxy S8 was the most breakable smartphone put through dropping and tumbling tests conducted by the insurer.


Most liked

Clapper: US govt 'under assault' by Trump after Comey firing
Among Democrats, though there is little doubt that the firing is not sitting well as 66 percent disapprove of Comey's dismissal. Comey also said it made him feel "mildly nauseous" to think his actions in October might have influenced the election outcome.

Trump asked Comey to shut down Flynn investigation
On Tuesday, people close to the matter said Comey kept detailed notes of his multiple conversations with Trump. After the meeting, Comey's associates did not believe there was any way to corroborate Trump's statements.

Hackers demand ransom over 'stolen Disney movie'
While governments of various countries of the world deal with the problem, Disney has landed in deep trouble with online hackers. Well, all we can do is just wait and see if Dead Men Tell No Tales will open in theatres or on the internet.

Fox News' Guilfoyle up for White House press secretary job
Guilfoyle is even talking about Spicer as if he is already gone: " Sean Spicer is a very nice man and a patriot". On her relationship with Trump, Guilfoyle states, "I think I have a very good relationship with the president".

Hostages freed from mosque in Central African Republic
The armed men also attacked the Muslim neighbourhood of Tokoyo where numerous civilians were killed and others wounded. The Council called on the Government to swiftly investigate this attack and bring the perpetrators to justice.

With Merkel and PM, France's New President Wastes No Time
Former French prime minister Jean-Pierre Raffarin, who also attended the Beijing summit, confirmed Mr Putin's claims via Twitter . Alexis Kohler, Mr Macron's new general secretary at the presidential Elysee Palace, made the announcement on Monday.

Sega looking to revive 'major IPs'
Last month, the company launched the original Bayonetta action brawler from developer Platinum Games on PC for the firs time. What IPs will be revived by Sega are now under speculation as no other details were revealed in the presentation.

Giroud double helps Arsenal beat Stoke 4-1 in Premier League
In the games like that when you go to Stoke you need at some stage to suffer, to stick together and that's what we did. But the Reds remain in pole position to finish in the top-four after beating West Ham in the capital.

Nadal beats Thiem in Madrid, wins 3rd straight title
Spanish tennis player Rafael Nadal in Madrid was the victor of a major clay tournament of series ATP-1000. It was Nadals fifth title in eighth Madrid Open finals , and the first since 2014.

Delta wants you to scan your face at the Minneapolis airport
Passengers without passports can still check their own bags, but they need a Delta agent to confirm their identities. The Atlanta-based carrier is spending $600,000 to test a new self-service bag drop system at MSP this summer.

China's Xi urges restraint on N. Korea in call to Duterte
As reported on May 1 by The New York Times , the initiative of the USA president was a complete surprise for these departments. Priebus made clear that North Korea was the top priority. "I'm tied up", he told reporters Monday in southern Davao city.

Texas Southern University Cancels Republican Sen. John Cornyn's Commencement Speech
Three other people are expected to interview Saturday with Attorney General Jeff Sessions and his deputy, Rod Rosenstein. The latest Texas news from The Associated Press.

Callista Gingrich likely to be named ambassador to Vatican
She has no experience at all in diplomacy, like virtually everyone else Trump has nominated for such positions. The two have been fascinated by the papacy, producing a documentary about Pope John Paul II in 2010.

North Korea claims US 'biochemical' plot to kill Kim Jong Un
North Korea regularly lashes out at the US and South Korea , though the allegations lodged Friday were more specific than usual. Kim has continued North Korea's nuclear weapons program in spite of worldwide pressure to shut it down.

Do you agree with Sessions' get-tough approach?
While Trump has promised to be tough on crime, ideas like this will only make the problems in our system worse. You know, Attorney General Sessions has a much higher obligation.