Inflation hits 4.5%; Sterling snaps five-day decline

Inflation rose to its highest level since September 2008 last month, reversing the previous month's retreat and breaking sterling's five-day decline against the dollar.

CPI annual inflation was 4.5% in April, putting it back on course after the March reading of 4% showed a 0.4% fall from February. The last time CPI annual inflation was higher was September 2008 when it stood at 5.2%, the record high for CPI. Sterling rose 0.6% against the dollar on the news to $1.63, after five straight days of decline. Against the euro the pound was up 0.45% to €1.15. The Office for National Statistics said the largest upward pressures to the change in CPI inflation came from transport, where the timing of Easter contributed to fares rising by 29% between March a...