Inflation hits 4.5%; Sterling snaps five-day decline

CPI annual inflation was 4.5% in April, up from March's reading of 4% which had indicated a 0.4% fall on 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 ONS 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 and April 2011. However Jeremy Cook, ch...