British inflation rose back to its 2 per cent target in April on the back of higher air fares and sharp increases in household energy bills but tempered by cheaper meals out.
Consumer prices increased by 0.6 per cent last month - the biggest monthly rise in nearly five years - taking the annual rate of inflation up to 2 per cent, The Office for National Statistics reported today.
That was in line with analysts' expectations and the Bank of England's target and compared with March's unexpectedly weak reading of 1.8 per cent.
The pick-up underpinned widespread expectations that UK interest rates may eventually have to rise from 4.5 per cent, although not for some time.
Short sterling rate futures briefly cut losses after the data as policymakers are unlikely to be overly concerned given they had predicted a short-term pick-up in inflation due to rising energy costs.