Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Daily Mirror
Daily Mirror
Business
Emma Munbodh

All the price hikes as inflation hits 1.5% - from clothes to energy, ice cream and petrol

Inflation rose to an eye-watering 1.5% in April as businesses reopened and a higher energy price cap rate came into force.

The increase marked the biggest rise since March 2020 and came as lockdown restrictions eased across England and further parts of the UK.

The jump to 1.5% in April from 0.7% in March, means consumer prices are rising at their fastest rate in over a year.

Leading the way is energy bills after the default tariff cap increased by £96 for more than 11million households last month.

The sharp increase largely reflected a jump in prices from low levels a year ago at the start of the pandemic, the Office for National Statistics said.

Higher oil prices also pushed up petrol prices, it added.

Energy prices rose for 15million people on the most expensive tariffs (Getty Images)

According to the ONS, inflation climbed as lockdown restrictions were eased and shops reopened on 12 April.

In this period, the cost of takeaways, sugary foods and footwear all rose.

Hannah Audino, economist at PwC, said she expected inflation to continue to rise as lockdown restrictions eased and the economy continued to reopen "allowing consumers to unleash some of their excess savings".

"Recent survey evidence suggests that the share of households who plan to spend some of their savings has increased in recent months, as the vaccine rollout boosts confidence," she added.

There are now concerns that soaring inflation could push central banks to raise interest rates.

Inflation is on the rise, with economists predicting further increases as the global economy reopens (Office for National Statistics)
The price of chocolate has also gone up (Getty)

Liz Martins, senior economist at HSBC, said that it looked like UK inflation would go above the Bank of England's 2% target, although this was "not too much of a worry for the Bank".

"Their view is that they need to keep inflation sustainably around 2% two to three years out from now, so the short term overshoot won't worry them too much, if it does prove temporary - and that's where opinions really seem to diverge," she said.

Bank of England chief economist Andy Haldane, said the rise could be a cause for concern, and the Bank may need to raise interest rates to prevent inflation staying above target.

It comes just weeks after the Bank of England warned that UK inflation is heading above its 2% target and is expected it to hit 2.5% at the end of 2021.

So what items rose in price in April? We take a look below.

What items have risen in price?

Clothing costs are on the rise (Greg Martin / Cornwall Live)

The largest cost increases in April were in utility, clothing, and fuel prices, the ONS said.

Transport – namely fuel costs - fell significantly in May 2020 during the first lockdown. It marked the largest monthly fall in petrol since the current ultra-low sulphur or unleaded petrol series began in 1990.

But between March and April 2021, petrol prices rose by 1.8p per litre, to stand at 125.5p per litre, and diesel prices rose by 1.4p per litre, to stand at 129.5p per litre.

Prices for new petrol and diesel cars also rose by 0.5% between March and April 2021, in part because of the increase to Vehicle Excise Duty announced in the Budget, however this was partially offset by a fall in the price of electric and hybrid cars, despite changes to the plug-in grant for low-emission vehicles.

Energy prices have also risen thanks to an increase in wholesale costs.

On April 1, 15million households saw their gas and electricity bills soar by almost £100 a year as the default cap - the top amount suppliers can charge customers on default or “standard variable” tariffs - increased.

Based on average use, it means at least 11million homes will see annual dual fuel bills rise by £96 to £1,138 this year.

A further 4million people on pre-payment meters will now pay £1,156 for the year – £87 more.

Fuel prices are on the rise (Getty)

Clothing and footwear prices also rose 2.4% between March and April 2021 as retailers reopened on April 17.

Food prices rose by 0.9% between March and April 2021 but were little changed between the same two months in 2020. Bread and cereal items rose the most.

There were similar increases in sugar, jam, syrups, chocolate and confectionery items, with large bars of chocolate and chocolate covered ice-cream bars rising the most.

Prices for these items rose between March and April 2021 but were being discounted between the same two months in 2020.

There was a further small increase in dairy products, from yoghurts and chilled desserts.

Elsewhere games, toys and hobbies, including computer games, consoles, dolls, craft kits, and preschool activity toys overall fell by 7.3% in April.

There were similar downward contributions across fish, meat, and oils and fats.

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.