World Business

British inflation rate hits 17-mth high in April

(Xinhua)
Updated: 2010-05-19 11:01
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LONDON - The consumer prices index (CPI) in Britain increased at annual rate of 3.7 percent in April comparing with a rate of 3.4 percent in the previous month and hit a 17-month high in last month, the Office for National Statistics (ONS) reported on Tuesday.

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The report showed that the gain of April's CPI in Britain was driven by big rises in tax on alcohol and tobacco as well as clothing and food prices.

The UK retail price inflation gauge rose to 5.3 percent from 4.4 percent, versus forecasts for a rise to 4.9 percent, the highest since July 1991.

The current inflation level in Britain is much higher than the 2 percent target set by the UK government, partly resulting from the soaring financial deficit.

British Chancellor of the Exchequer George Osborne said on Monday that the new coalition government will announce an emergency budget next month aimed at "significantly reducing" the record government budget deficit.