Inflation hits 4.5%; August rate rise forecast

by Colette Sowerby 17th May 2011

Inflation rose to its highest level since September 2008 last month, reversing March’s retreat.

CPI annual inflation was 4.5% in April, putting it back on course after the March reading of 4.0% showed a 0.4% fall on February.

Last week's quarterly inflation report, suggests CPI will likely hit 5% soon this leads us to believe a rate rise in August is now more likely than ever.

The last time CPI annual inflation was higher was September 2008, when it stood at 5.2% - this was a record high for CPI.

The Office of National Statistics states the largest upward pressures to the change in CPI inflation came from transport, where the timing of Easter contributed to fares rising by 29% between March and April 2011.

 Dated 2011 – valid for 6 months. AisaProfessional is a trading style of Aisa Direct Ltd, authorised and regulated by the FSA as Independent Financial Advisers. 4 Fordbrook Business Centre, Pewsey, SN9 5NU

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