CPI (Consumer Price Index) rose to 4.5% in April after its fall to 4% in March. CPI is now at its highest level since October 2008.
However, RPI (Retail Prices Index) which includes the cost of borrowing actually fell slightly to 5.2% from 5.3% in March.
This rise in CPI was greater than many experts had predicted and can be attributed to a increase in transport costs, particularly air fares which rose by 29% from March to April. Rising alcohol and tobacco costs also contributed.
The new figures will increase pressure on the Bank ...