UK consumer price inflation (CPI) ended its ten month slide and moved from 1.6% in March to 1.8% in April, with transport costs such as airfares and fuels being the biggest gainer, rising 1.6%.
This meant that prices for many goods in April 2014 which were boosted by the Easter holidays were compared to a normal level of prices in April 2013.
Sterling jumped to near a week-high of $1.685 versus the dollar, before falling back to $1.682. Gains versus the euro were stronger, holding at a year-to-date high of €1.228.
Core factory gate prices continued to slow however, up just 1% over the year to April versus 1.1% in the year to March, suggesting that underlying pricing pressure continues to be marginal.