UK inflation rate more than doubles

The rate of inflation more than doubled to 1.5 per cent in April, according to figures released today.

The jump from 0.7 per cent in March means consumer prices are now at their highest level since the outset of the pandemic, the Office for National Statistics said.

Business leaders say the sharp increase was expected following a rise in fuel prices and the end to emergency VAT cuts in the hospitality sector back in September.

The Consumer Prices Index, including owner occupiers ' housing costs (CPIH), also rose by 1.6 per cent in the 12 months to April 2021, up from the 1.0 per cent growth in March.

This was largely down to rising household utility, clothing, and motor fuel prices.

Raj Kandola (pictured), head of policy at Greater Birmingham Chambers of Commerce, said: “Today 's results were in line with many economists expectations as we saw a sharp increase in the levels of inflation over the last months.

“That 's no surprise given the rise in global oil prices has had a knock on impact on fuel costs, the removal of price caps on energy tariffs and the fact that the Government ended their emergency cuts to VAT in the hospitality sector back in September.

“As large parts of the economy emerge from hibernation and with a frenzied burst of consumer spending expected over the next few months, it 's likely to take the level of inflation above the Bank of England 's self imposed 2 per cent target. Whether this will lead to a change in interest rate policy remains to be seen.

“This week we 've started surveying for our latest Quarterly Business Report and we would love to hear from businesses across the region as to whether they 've been impacted by these inflationary pressures as national restrictions begin to ease. ”

Complete the Chamber's Quarterly Business Report survey here.