CliffNotes
- UK inflation rate rises to 3.5%
- The figure is higher than most forecasts
- The increase was mainly driven by higher household bills
UK inflation rises jumps to 3.5%
What Happened
UK inflation rose to 3.5% in April, up from 2.6% in March, according to the Office for National Statistics (ONS).
This figure is higher than most forecasts — economists expected around 3.3%, while the Bank of England predicted 3.4%.
It marks the highest rate since February 2024.
The increase was mainly driven by higher household bills, including gas, electricity, water charges, and rising airfares.
This is significant because the Bank of England aims to keep inflation at 2%, using interest rate changes to manage it.
What’s Been Said
Grant Fitzner, acting director general of the ONS, explained:
“The jump in the rate of inflation to 3.5% in the year to April was driven by higher gas and electricity bills, but also increases in air fares and water bills.”
He added:
“I think the Bank of England will be more concerned about underlying pressures,”
“Pay growth is still significantly above the rate of inflation.”
“There are some other global factors at play here as well, we are seeing lower petrol prices but also a stronger pound which potentially means cheaper imports.”
Chancellor Rachel Reeves responded:
“I am disappointed with these figures because I know cost of living pressures are still weighing down on working people.”
“We are long way from the double digit inflation we saw under the previous administration, but I’m determined that we go further and faster to put more money in people’s pockets.”
“That’s why we have increased the minimum wage for millions of working people, frozen fuel duty to protect commuters and struck three trade deals in the past two weeks that will go towards cutting bills.”
What Next
With inflation still above the Bank of England’s 2% target, pressure may mount to keep interest rates higher for longer.
The government and opposition are clashing over who is to blame, while families continue to feel the squeeze.
The Bank’s next move will depend on whether these inflationary pressures persist in the coming months.