As lockdown eases, UK inflation more than doubles to 1.5pc in April

Hike in goods related to several sectors took the consumer price index up to 1.5% amid the easing of lockdown restrictions.

Statistics published by the Office for National Statistics (ONS) identified rising household utility, clothing and motor fuel prices as the biggest drivers of the increase which was still partially offset by a large downward contribution from recreation and culture.

Rising from 0.7 per cent in March, the increase in the consumer price index matched expectations from economists and the Bank of England, who see the move as a step on the path towards inflation exceeding the 2 per cent target by the end of the year.

Gas and electricity saw big jumps with price rises of 9.4% and 9.1% respectively between March and April drove by a spike in global demand for wholesale gas.

A bounce in oil prices from $20 per barrel last year to around $70 today also put pressure on inflation and will continue to do to demand increases as the global economy opens up again.

Inflation is likely to increase further throughout the year as “the economy gradually reopens, the recovery picks up steam and supply constraints intensify in the sectors that were hit by the pandemic,” according to a senior economist.

Unlike in the US, where the headline inflation measure hit 4.2 per cent in April, most economists thought the UK figures did not yet show signs of a sustained overshoot in price rises, although some said there were some causes for concern in the data. Prices of eating out in restaurants, staying in hotels, and clothing all increased sharply in April, after non-essential shops reopened and hospitality venues were allowed to serve customers outside.