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South Wales Guardian
2 days ago
- Automotive
- South Wales Guardian
ONS admits April inflation figure was too high after vehicle tax data error
Official data published last month showed Consumer Prices Index (CPI) inflation rose to 3.5% in April, up from 2.6% in March. But the ONS said on Thursday that it has since spotted an error in the vehicle excise duty data provided to the ONS by the Department for Transport, which is part of the information used to calculate inflation. The number of vehicles subject to the tax in the first year of registration was too high in the data given, according to the statisticians. This meant CPI, as well as Retail Prices Index (RPI) inflation, were overstated by 0.1 percentage points in April. The ONS said it would not be revising the official published figures and no other periods were affected by the error.
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Business Standard
2 days ago
- Business
- Business Standard
Data error may have pushed up UK inflation, rate cut bets in April: ONS
The data error means the inflation rate would have been closer to the 3.3 per cent consensus forecast and 3.4 per cent predicted by the central bank Bloomberg Britain's statistics agency said it overstated the official inflation rate due to a mistake in numbers it was given on vehicle taxes, the latest in a string of errors to plague the country's economic data. The Office for National Statistics said Thursday the headline inflation rate was 0.1 per cent higher than it should have been in April's market-rattling figures, as a result of incorrect vehicle excise duty data from the government's transport department. While the ONS will not revise its inflation estimate, it will use the correct data for May. The error may have contributed to the sharp market reaction to April's inflation data. It means that the spike in prices seen in April was less severe than first thought after inflation jumped to a 15-month high of 3.5 per cent. The bigger-than-expected pick-up in price pressures in April's initial data prompted traders to cut bets on an easing in interest rates by the Bank of England. It helped to retrench expectations of fewer reductions after the central bank's hawkish tone at the May meeting. The data error means the inflation rate would have been closer to the 3.3 per cent consensus forecast and 3.4 per cent predicted by the central bank and a plurality of economists including Bloomberg Economics. Markets were little changed following Thursday's statement, fully pricing in one more rate cut for this year. Other volatile factors are thought to have pushed up April's figure with the ONS collecting price data for air fares over Easter when demand spikes. Credibility The error is the latest to undermine the credibility of the UK's official economic statistics after a series of high-profile problems that first hit its labor market statistics before spreading to other numbers. It is the second time in recent months that its price statistics have been affected by errors with the ONS suspending its producer price figures in March. The ONS has faced mounting pressure and is awaiting the outcome of a government probe into its failings. It is also without a permanent head after National Statistician Ian Diamond resigned last month on health grounds. The latest error related to an overstatement of the number of vehicles subject to vehicle excise duty rates applicable in the first year of registration. VED is a tax applied to every vehicle using public roads in the UK, adjusted according to their environmental impact. It is expected to raise over £9 billion ($12.2 billion) in the current fiscal year, according to the Office for Budget Responsibility. 'This has the effect of overstating the headline Consumer Price Inflation (CPI) and Retail Prices Index (RPI) annual rates by 0.1 percentage points for the year to April 2025 only. No other periods are affected,' the ONS said in a statement. 'We are reviewing our quality assurance processes for external data sources in light of this issue.'
Powys County Times
2 days ago
- Automotive
- Powys County Times
ONS admits April inflation figure was too high after vehicle tax data error
The UK's headline inflation figure was 0.1 percentage points too high for April due to an error in the vehicle tax data collected, the Office for National Statistics (ONS) has said. Official data published last month showed Consumer Prices Index (CPI) inflation rose to 3.5% in April, up from 2.6% in March. But the ONS said on Thursday that it has since spotted an error in the vehicle excise duty data provided to the ONS by the Department for Transport, which is part of the information used to calculate inflation. The number of vehicles subject to the tax in the first year of registration was too high in the data given, according to the statisticians. This meant CPI, as well as Retail Prices Index (RPI) inflation, were overstated by 0.1 percentage points in April. The ONS said it would not be revising the official published figures and no other periods were affected by the error.
North Wales Chronicle
2 days ago
- Automotive
- North Wales Chronicle
ONS admits April inflation figure was too high after vehicle tax data error
Official data published last month showed Consumer Prices Index (CPI) inflation rose to 3.5% in April, up from 2.6% in March. But the ONS said on Thursday that it has since spotted an error in the vehicle excise duty data provided to the ONS by the Department for Transport, which is part of the information used to calculate inflation. The number of vehicles subject to the tax in the first year of registration was too high in the data given, according to the statisticians. This meant CPI, as well as Retail Prices Index (RPI) inflation, were overstated by 0.1 percentage points in April. The ONS said it would not be revising the official published figures and no other periods were affected by the error.
Yahoo
2 days ago
- Automotive
- Yahoo
ONS admits April inflation figure was too high after vehicle tax data error
The UK's headline inflation figure was 0.1 percentage points too high for April because of an error in the vehicle tax data collected, the Office for National Statistics (ONS) has said. Official data published last month showed Consumer Prices Index (CPI) inflation rose to 3.5% in April, up from 2.6% in March. But the ONS said on Thursday that it has since spotted an error in the vehicle excise duty data provided to the ONS by the Department for Transport, which is part of the information used to calculate inflation. The number of vehicles subject to the tax in the first year of registration was too high in the data given, according to the statisticians. This meant CPI was overstated by 0.1 percentage points in April – meaning it should have been 3.4%. Retail Prices Index (RPI) inflation was also 0.1 percentage points too high for the month. The ONS said it would not be revising the official published figures, in line with its policy which only carries out revisions in exceptional circumstances. It also confirmed that no other periods were affected by the error. The correct vehicle excise duty data is set to be brought in for May's inflation announcement. The tax is levied on every vehicle using public roads in the UK, including electric cars, which from April were no longer exempt. Rates for petrol cars also increased from April, with owners of the largest and most polluting vehicles seeing a doubling of the amount they have to pay in the first year. The ONS had said the tax hike was one of the biggest factors contributing to the jump in CPI inflation during the month. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
