Inflation is rebounding in the UK after falling from an annual rate of 2.9% in June 2013 to 1.6% in March 2014.April CPI y/y: 1.8%Forecast: 1.7%March CPI y/y: 1.6% (tradingeconomics.com)Air fares and sea fares, categorized under transport prices, were the biggest contributors to the increase, with prices up 18% and 22% on the month respectively.On the year though, the respect price change was a fall of 6%, and a rise of 3%.To the downside, foods and non-alcoholic beverages was the biggest drag, falling 0.5% between March and April 2014, and falling 0.7% on the year.April Core CPI y/y: 2.0%Forecast: 1.8%March Core CPI y/y: 1.6% Official release from the Office for National Statistics (ONS)The GBP gained on USD and EUR immediately after the release, but traders seem to be fighting back the initial reactions by the time the US session started.While the short-term reaction may be limited, another month of CPI increase toward 2.0% or at 2.0% should give the BoE more reason to shorten its wait on increasing the key interest rates, which would be a boost for the pound.