UK April inflation overstated because of car tax error, ONS says

An error in calculating data on the automotive tax caused a overestimation of the UK inflation rate of 0.1 percentage point for the year to April, the Office for National Statistics (ONS) announced on Thursday.

The ONS initially declared last month that the annual rate of the United Kingdom reached 3.5% in April, which was greater than analysts’ expectations. On Thursday, the statistical organization published revised data, showing that the country’s consumer price index increased by 3.4% down 12 months until April.

The revised April figure always exceeds the levels of 3.3% previously expected by Reuters analysts.

The ONS published a declaration noting that an error had been identified in the data on vehicle rights rights (VED) provided to the statistics organization by the UK transport department, which is a measure used to calculate consumer prices inflation.

“Incorrect data overestimates the number of vehicles subject to the excise rates of the vehicle (VED) applicable during the first year of registration,” he said.

This had the effect of overestimating the annual prices of the IPC price index and retail prices (RPI) of 0.1 percentage point for the year at April 2025 only. No other period is affected, said the ons.

“In accordance with our consumer price revisions policy, these statistics will not be changed. However, we examine our quality assurance processes for data external data in light of this problem.”

Error is an unwanted smear on the already stained file of the ons, which has been criticized in certain environments for the precision and reliability of its data.

The statistical agency apologized for the error and said it would use the data properly weighted from the figures of May 2025, “which means that no other statistics will be assigned”.

CNBC asked for additional comments on the ons and awaits an answer.