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19 May 2015
UK CPI in April drops below zero for the first time since 1960
FXStreet (Mumbai) - The data released by the UK Office for National Statistics (ONS) on Tuesday showed the inflation as measured by the consumer price index (CPI) fell 0.1% year-on-year in April, missing the estimate and the previous figure of 0%.
Core CPI in April also cooled down to 0.8% year-on-year, compared to the expectation of 1%. Meanwhile, the CPI rose 0.2% month-on-month as against the expectation of a 0.4% rise.
Year-on-year the CPI has dipped below 0% for the first time since official records began in 1996 and the first time since 1960 based on comparable historic estimates. As per the ONS data, the largest downward contribution came from transport services - notably air and sea fares, with the timing of Easter this year a likely factor.
Producer price index – output fell 1.7% in the year to April 2015, unchanged since February 2015. Core factory gate prices, which exclude the more volatile food, beverage, tobacco and petroleum products, rose 0.1% in the year to April 2015, unchanged from last month.
Core CPI in April also cooled down to 0.8% year-on-year, compared to the expectation of 1%. Meanwhile, the CPI rose 0.2% month-on-month as against the expectation of a 0.4% rise.
Year-on-year the CPI has dipped below 0% for the first time since official records began in 1996 and the first time since 1960 based on comparable historic estimates. As per the ONS data, the largest downward contribution came from transport services - notably air and sea fares, with the timing of Easter this year a likely factor.
Producer price index – output fell 1.7% in the year to April 2015, unchanged since February 2015. Core factory gate prices, which exclude the more volatile food, beverage, tobacco and petroleum products, rose 0.1% in the year to April 2015, unchanged from last month.