Inflation in the UK surged to its highest level since January 2024 in April, driven by sharp increases in domestic bills such as energy and water, official data revealed on Wednesday.
The Office for National Statistics reported that the consumer prices index rose by 3.5 per cent in the 12 months to April, up from 2.6 per cent in March — surpassing economists’ expectations of a rise to 3.3 per cent, news agency AP reported.
This marks the steepest monthly inflation jump since October 2022, during the height of the global energy crisis following Russia's full-scale invasion of Ukraine.
Economists had anticipated a notable rise in April due to substantial annual increases in utility costs, higher business taxes, and a significant boost to the minimum wage.
With inflation expected to remain above 3 per cent for the rest of 2025, prospects for additional interest rate cuts by the Bank of England may diminish. The central bank, which targets a 2 per cent inflation rate, has been gradually reducing rates since last August from a 16-year high of 5.25 per cent. Earlier this month, it lowered the main rate to 4.25 per cent.
Bank of England chief economist Huw Pill, speaking on Tuesday, expressed concern that borrowing rates may have been cut too swiftly, highlighting persistent underlying inflation pressures.
Rob Wood, chief UK economist at Pantheon Macroeconomics, said that further rate cuts following a “precise quarterly schedule” are now “far from certain.”
Although inflation is set to stay above target this year, economists expect it to ease in 2026, partly due to the recent UK-U.S. trade deal that scrapped several planned tariffs introduced during the Trump administration.
The sudden jump in inflation presents a political challenge for the Labour government, which returned to power last July after 14 years. The party has recently emphasized signs of economic progress, including stronger-than-expected Q1 growth and a series of trade deals — not only with the US, but also with India and the European Union.
“I am disappointed with these figures, because I know cost of living pressures are still weighing down on working people," said Treasury chief Rachel Reeves.
The Conservative Party, now in opposition, blamed the inflation spike on Labour’s fiscal policies.
“Families are paying the price for the Labour Chancellor’s choices," said Mel Stride, the Tories' economy spokesman.
The Office for National Statistics reported that the consumer prices index rose by 3.5 per cent in the 12 months to April, up from 2.6 per cent in March — surpassing economists’ expectations of a rise to 3.3 per cent, news agency AP reported.
This marks the steepest monthly inflation jump since October 2022, during the height of the global energy crisis following Russia's full-scale invasion of Ukraine.
Economists had anticipated a notable rise in April due to substantial annual increases in utility costs, higher business taxes, and a significant boost to the minimum wage.
With inflation expected to remain above 3 per cent for the rest of 2025, prospects for additional interest rate cuts by the Bank of England may diminish. The central bank, which targets a 2 per cent inflation rate, has been gradually reducing rates since last August from a 16-year high of 5.25 per cent. Earlier this month, it lowered the main rate to 4.25 per cent.
Bank of England chief economist Huw Pill, speaking on Tuesday, expressed concern that borrowing rates may have been cut too swiftly, highlighting persistent underlying inflation pressures.
Rob Wood, chief UK economist at Pantheon Macroeconomics, said that further rate cuts following a “precise quarterly schedule” are now “far from certain.”
Although inflation is set to stay above target this year, economists expect it to ease in 2026, partly due to the recent UK-U.S. trade deal that scrapped several planned tariffs introduced during the Trump administration.
The sudden jump in inflation presents a political challenge for the Labour government, which returned to power last July after 14 years. The party has recently emphasized signs of economic progress, including stronger-than-expected Q1 growth and a series of trade deals — not only with the US, but also with India and the European Union.
“I am disappointed with these figures, because I know cost of living pressures are still weighing down on working people," said Treasury chief Rachel Reeves.
The Conservative Party, now in opposition, blamed the inflation spike on Labour’s fiscal policies.
“Families are paying the price for the Labour Chancellor’s choices," said Mel Stride, the Tories' economy spokesman.
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