UK
The rate of
inflation in the UK doubled in April 2021 due to a hike in the prices of
fashion apparel and a drop in the prices of energy supplies. As per ONS, CPI
jumped to 1.5% in April from that of 0.7% in March.
According to the
ONS data, the prices of clothing and footwear also rose by 2.4% due to the
opening of stores at full prices. It is also believed that the inflation
increase is due to the rapid rise in the electricity prices as the tariff cap
was removed this year. Another reason is the sharp rise in the cost of crude
oil.
As per Grant
Fitzner, Chief Economist, inflation in April rose because of the shooting
prices of clothing and household utilities this year. As per the forecast by
the Bank of England, UK inflation will increase to 2.4% by the end of
2021.
Andrew Bailey, Governor, assured that the price hike is temporary
and will return to 2% in the mid term. Another parameter of calculating
inflation is RPI. Current RPI is 2.9%, which is the highest RPI rate since June
2019.
Source: Retail
Gazette
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