British inflation holds steady at 1.9% in April

Britain's inflation rate held steady near a seven-year high in April.

Britain's inflation rate held steady near a seven-year high in April.

The Office for National Statistics (ONS) said consumer prices rose at an annual 1.9 percent last month, in line with forecasts but only just below the Bank of England's 2 per cent target.

The annual rate was unchanged from March. The ONS said household services charges increased by more than a year ago. Miscellaneous goods and services including steeper increases in banking service charges in April compared with last year were also large upward effects.

Offsetting downward effects came from a fall in fresh vegetable prices on the month in April.

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Furniture also had a downward effect, thanks to widespread sales on many items in April after prices recovered strongly in the prior month. All goods prices rose an annual 0.2 per cent, the highest rate in six years.

Separately, the ONS said the retail price index, on which most pay deals are based, rose an annual 3.2 per cent, unchanged from March and in line with forecasts.