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Inflation increases to 1.6%

Inflation rose by 1.6% in the 12 months to April, up from the 1% inflation rate recorded in March and the first time it went above 1% since July 2020.

On a monthly basis, inflation rose in April by 0.7% following an increase of 0.2% in March.

The jump in inflation means that prices are rising at their fastest rate since March 2020 at the onset of the pandemic.

There is still a way to go for inflation to hit the Bank of England's target of 2%.

The Bank recently predicted inflation to reach 1.7% in Q2 2021 and 2.3% in Q2 2022 before settling at 2.0% in Q2 2023.

It also said it had no current plans to put up interest rates, one of its tools to keep inflation down.

For the growth seen in April, rising prices of household utility, clothing and fuel prices were mainly responsible for pushing inflation up.

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