The UK inflation rate rose for the first time in ten months during April, pushed up by higher fares for travel and the cost of fuel.
The Consumer Price Index rose to 1.8% in April according to the Office for National Statistics – up from 1.6% the previous month.
According to the ONS, the timing of Easter had a big impact on travel costs, while petrol cost more in April than in March.
House prices increased by 8% in March – slowing from the 9.2% in the previous month – although this does little to suggest that the current record low 0.5% interest rate will be altered any time soon.
Positives in the food market
One positive was that the cost of food continued to drop, which partially offset the increases seen elsewhere.
Vegetables and fish especially saw large drops in inflation, falling by 2.3% and 3.4% respectively, while non-alcoholic drinks fell by 0.5%.
The month did highlight the need for people to keep a careful eye on their finances though, as despite the recovering economy; there remains some way to go.
The latest CPI rate puts the cost of living back above wage rises – with the most recent figure for the three months until February showing an annual rate of 1.7% for wages.
Remaining on target
Importantly, the current rate of 1.8% inflation is still below the 2% target set by the Bank of England, while its governor Mark Carney expects that to be the case for at least the next two years.
Some economists have called the latest figure a blip in the overall trend of falling rates towards 2015 and beyond.
However, it still showcases the need to ensure that sufficient money is available to cover essential bills and others costs.
Rents remain high and with demand also soaring, these levels of rent are likely to remain for the foreseeable future.
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