RBI on hold for now, 50 bps rate hike likely in 2018

The ONS said house prices in March rose at their weakest rate since October 2013, up 4.1 percent on the year.

According to NBS, inflation drop to 17.24 percent (year-on-year) through slower pace in April, 0.02 percent point lower from the rate recorded in March (17.26) percent.

"Having hovered close to zero back in 2015, inflation has really picked up in 2017, doubling in the last six months alone and now at its highest level for nearly four years", said Matt Whittaker, chief economist at the Resolution Foundation.

The ONS said that air fares - due to the timing of Easter - along with prices for clothing, vehicle excise duty and electricity contributed to the increase.

The rise keeps the rate above the Bank of England's 2 per cent target and comes after CPI paused at 2.3 per cent in February and March.

Annual inflation in the United Kingdom stood at 2.7% in April, the fastest rate of price growth in over three years, overshooting the Bank of England's 2% target for the third consecutive month.

The retail price index, which is no longer used as an official measure of inflation but is used for some inflation-linked bonds, increased to 3.5 per cent from 3.1 per cent.

Figures released on Tuesday showed inflation hit 2.7 per cent in April, its highest since September 2013. "The numbers in employment were up by over 120,000 in the first quarter of this year - the biggest quarterly increase since the European Union referendum". Real earnings are still below their level before the 2008 financial crisis, and their recovery over the past two years is now going into reverse as the weak pound pushes up prices.

'The squeeze on real pay augurs a slowdown in consumer spending, ' he added, 'which in turn risks pushing unemployment up and depressing pay growth'.

The data failed to boost the pound as investors bet against an immediate rise for Britain's record-low interest rate to curb prices.

Malaysia's core inflation is expected to stay relatively modest and the Bank Negara Malaysia (BNM) to maintain its policy rate at 3.00 percent throughout 2017.

Ms May has told voters she too is aware of the squeeze on their spending power and said she will cap energy prices, breaking with the Conservative Party's usually pro-market stance.

When adjusted for inflation, however, average weekly earnings fell 0.2% year-on-year when excluding bonuses and climbed 0.1% from a year earlier when bonus are taken into account.

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