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CPI inflation rises to 3.0 per cent

13th May 2008 Print
Consumer Price Index (CPI) annual inflation - the Government's target measure - was up from 2.5 per cent in March to 3.0 per cent in April.

The largest upward contribution to the change in the CPI annual rate came from housing and household services due to changes in the price of gas, electricity and heating oil.

There were further large upward contributions from: Food and non-alcoholic beverages particularly meat, fruit, some breads and cereals and fish.

Food and non-alcoholic beverages particularly meat, fruit, some breads and cereals and fish.

Miscellaneous goods and services where prices rose this year but fell last year, principally due to banking services.

Restaurants and hotels where the effect mainly came from alcoholic drinks sold in restaurants and cafes, reflecting the increase in excise duty which was larger than last year.

Alcohol and tobacco where prices of spirits and wine rose this year but fell last year. Again the main effect is because of the increase in excise duty.

Recreation and culture where the largest effect came from computer games which rose this year but fell last year.

Furniture and furnishings where price reductions in April had less effect than in the previous year across a wide range of furniture.

The largest downward contribution came from transport costs, mainly due to air transport and fuels and lubricants.

The downward contributions were:

Air fares, which fell in April after a rise in March, with the largest effect occurring for European flights. Last year air fares rose in April.

The price of fuels and lubricants which rose this year by less than last year. The average price of petrol increased by 1.9 pence per litre between March and April this year, to stand at 108.2 pence, compared with a rise of 3.4 pence last year. By contrast, diesel prices rose by more than last year but have a smaller effect on the fuels index.

There was a further large downward contribution from clothing and footwear.