The UK inflation rate doubled in April as rising energy and clothing costs have driven higher consumer prices.
The consumer price index (CPI), a measure of inflation, jumped 1.5% last month from 0.7% recorded in March. This is the fastest increase ever recorded since March 2020, which is when the pandemic began.
According to the National Statistics Office (ONS) which released the report, the rise in oil prices is one of the main factors driving this increase. Petrol prices are currently at their highest level since January 2020.
Meanwhile, analysts expect inflation to continue to rise in tandem as more restrictive measures and economic activity reopen allowing consumers to increase their spending.
Following the rise, the market is now wondering whether the Bank of England (BOE) will continue to take further tightening measures after they slowed bond buying rates at previous policy meetings.
At the time of writing, the pound remains traded steady around a nearly 3 -month high against the weaker US dollar.
The pound sterling continued to garner support from the prospect of a strong recovery in the UK economy as more coronavirus restrictions were lifted and vaccination progress was encouraging.
