The latest inflation figures released today by the Office of National Statistics indicate CPI inflation has reached 9.0% in the 12 months to April 2022, the highest rate since recording started in 1997, and up from 7.0% in March. CPI monthly inflation increased dramatically in April to 2.5%, with the Bank of England admitting they are powerless to stop the global price pressures and bizarrely affecting expectations themselves by declaring food price inflation will be apocalyptic.
Will the Bank of England now stop trying to pour cold water on the economy by attempting to control what they have given up trying to control and stop increasing interest rates?
However, the Annual Consumer Prices Index including owner occupiers’ housing costs (CPIH) rose by 7.8% the highest figure since April 1991, up from 6.2% in March. The largest contributing factors for this came from housing and household services (1.27%), restaurants and hotels (0.11%), and recreation and culture (0.10%), with the largest partially offsetting downward contribution from clothing and footwear (0.09%).
The ONS release states: “Given that the owner occupiers’ housing costs (OOH) component accounts for around 17% of the CPIH, it is the main driver for differences between the CPIH and CPI inflation rates. The inclusion of Council Tax and rates in CPIH is the only further difference. This makes CPIH our most comprehensive measure of inflation, and therefore, the commentary in this bulletin focuses on CPIH. But, while the CPI figures differ from CPIH, the key drivers of the 12-month inflation rate are the same where they are common to both measures. Section 5 is intended to focus on the elements of the basket that are unique to CPIH.”
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