Inflation in the UK slowed in April to its lowest level in 2016

Inflation in the UK slowed in April to its lowest level in 2016 на фоне слабых цен на нефть, показали данные Управления национальной статистики.

In the year-on-year consumer price inflation fell to 0.8 percent in April from 1.5% in March. Economists had forecast a rate reduction to 0.9%. The latest reading was the lowest since August 2016.

Core inflation, which excludes prices of energy, food, alcoholic beverages and tobacco, fell to 1.4% in April from 1.6% in March.

On a monthly basis, consumer prices fell to -0.2 percent after March remained unchanged. Expected decline in prices by -0.1%.

The Bank of England said that inflation could fall below 1% in the next few months. The Deputy Governor of the Bank of England Ben Broadbent said that it may drop below zero around the end of 2020, although it is not thought it will mean the beginning of a long period of deflation.

The office of national statistics, which produces the consumer price index, said earlier this month that inflation rates are likely to be unstable because turning off the coronavirus prevented statisticians to get prices on a wide range of products.

The fall in the cost of household bills, transportation, including gasoline and the price of clothing and footwear caused the biggest impact on inflation.

But it was the upward pressure from the prices of video games and consoles, Board games and toys, as well as fresh vegetables, the report said the ONS.

Another report from the ONS showed that prices for manufactured products fell for the first time since June of 2016.

The product prices in April fell in April to -0.7% in annual terms, while in March the growth was 0.3%. Economists had forecast a decline to -0.4 per cent.

In the past month prices of manufactured goods fell in April fell 0.7%, after falling -0.2% in March. It was also faster than expected decline by 0.5%.

At the same time, the prices of raw materials declined the most since December 2015. The producer price inflation of raw materials was mainly due to commodity prices, the report said the ONS.

Prices fell in April for fall 9.8% on an annual basis compared to March, a decrease of -3,1%. Economists had forecast a drop of -8,7% year-on-year.

On a monthly basis, raw materials prices recorded the biggest drop in the history of observations. Prices fell -5,1% after falling by -3.8 per cent in March. Economists had forecast a decline in prices by -4%.

Information-analytical Department TeleTrade

Source: teletrade.ru

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