Air fares help increase inflation
Latest figures from the Office for National Statistics show that Consumer Price Index (CPI) annual inflation, the Government’s target measure, rose to 2.0 per cent in April, up from 1.8 per cent in March.
The largest upward pressure came from transport as air fares rose this year but fell a year ago for international and domestic flights. This reflects the timing of the price collection period in relation to Easter, which fell in April this year but March a year ago. Partially offsetting this, a large downward effect came from bus travel with average fares falling following the introduction this April of free off-peak local bus travel in England for people aged 60 and over and for disabled people.
Retail Price Index (RPI) inflation rose in April to 2.6 per cent, up from 2.4 per cent in March. The factors influencing it were similar to those that affected the CPI although differences in weights for some components, particularly air fares, meant that the contributions were smaller in the
RPI. Housing costs excluded from the CPI had little effect on the RPI this month, other than council tax and rates which had a small upward effect with average bills rising by more than a year ago.
