Inflation has risen for the first time in 10 months, dashing hopes of an early end to the squeeze on family incomes.
Travel firms bumping up plane and ferry ticket prices by a fifth for the Easter holidays were a major factor in the rise in the Consumer Prices Index to 1.8 per cent.
Latest figures show annual wage increases were stuck at 1.7 per cent, meaning incomes are still being outstripped by the rising cost of living.
Today’s figures are the first rise in CPI since June 2013. The Office for National Statistics said: ‘This means that a basket of goods and services that cost £100.00 in April 2013 would have cost £101.80 in April 2014.’
A sharp rise in transport costs was by far the largest factor for the increase in overall prices, the ONS said.
‘Prices, overall, increased between March and April 2014, compared with a fall between the same two months a year earlier.
‘Air fares and sea fares were the two largest contributors to the rise, with prices increasing by 18 per cent and 22 per cent on the month respectively.
‘This compares with a fall of 6 per cent and a rise of 3 per cent for air fares and sea fares on the month a year ago. The timing of Easter was likely a factor in both cases.’
The cost of clothes and shoes also rose between March and April, having remained flat a year ago.
The price of food and drink fell by 0.5 per cent, with vegetables down after a better growing season this spring.
Ministers had hoped to see wages over-take inflation by now, which would have meant people felt better off each month.
Lib Dem Chief Secretary to the Treasury Danny Alexander said: ‘'Today's figures are further evidence that our long term plan to fix the economy is working."
Posted: Tue May 20, 2014 4:17 pm