UK April inflation overstated on account of automotive tax error, UK statistics company says

A automotive tax information calculation error brought about the U.Ok.’s inflation fee to be overstated via 0.1 proportion issues for the yr to April, the Office for National Statistics (ONS) mentioned on Thursday.

The ONS had to begin with mentioned ultimate month that the U.Ok.’s annual fee hit 3.5% in April, coming in above analyst expectancies. On Thursday, the statistics frame launched revised information, appearing the rustic’s client value index rose as a substitute via a decrease 3.4% within the 12 months to April.

The revised April determine nonetheless exceeds the 3.3% ranges up to now anticipated via Reuters analysts.

The ONS launched a commentary noting that an error have been recognized within the Vehicle Excise Duty (VED) information equipped to the statistics frame via the U.Ok.’s Department for Transport, which is one metric used to calculate client costs inflation.

“The incorrect data overstates the number of vehicles subject to Vehicle Excise Duty (VED) rates applicable in the first year of registration,” it mentioned.

This had the impact of overstating the headline CPI and Retail Prices Index (RPI) annual charges via 0.1 proportion issues for the yr to April 2025 handiest. No different sessions are affected, the ONS mentioned.

“In line with our consumer prices revisions policy, these statistics will not be amended. However, we are reviewing our quality assurance processes for external data sources in light of this issue.”

The mistake is an unwelcome smear at the already stained document of the ONS, which has been criticized in some quarters for the accuracy and reliability of its information.

The statistics company apologized for the mistake and mentioned it will be the usage of the as it should be weighted information from May 2025’s figures onward, “meaning no further statistics will be affected.”

CNBC has asked additional remark from the ONS and is anticipating a reaction.