UK inflation rate in April was overstated due to data error

The UK Office for National Statistics (ONS) reported that April's inflation rate was overstated due to an error in vehicle tax data.

The agency stated that the previously published overall price growth figure for April was 0.1 percentage points higher than the actual value. The error occurred because the UK Department for Transport provided incorrect data on vehicle excise duties. The ONS will not revise its April inflation estimate but will take the correct figures into account when calculating May's inflation rate.

Last month, the agency reported that consumer prices in the country reached a 15-month high of 3.5%. This significant increase in price pressure prompted traders to lower their bets on monetary policy easing by the Bank of England.

The calculation error means April's inflation rate was closer to the consensus forecast of 3.3% and the estimate of 3.4% from the central bank and most economists. According to Bloomberg, market sentiment changed little after the ONS statement on Thursday. Investors still expect another rate cut by the Bank of England this year.