The National Bureau of Statistics said the inflation rate on the consumer price index reached 3.5% in April, up from 2.6% in March.
UK inflation has surged to its highest level for more than a year last month after households were hit by the rise in the “bad April” bill, official figures revealed.
The National Bureau of Statistics (ONS) said consumer price inflation rate reached 3.5% in April, the highest since January 2024, from 2.6% in March.
The sharp rise in inflation was the biggest since October 2022 at the height of the energy crisis.
Economists were hoping to see a 3.3% rise last month.
Ofgem’s energy price cap rose 6.4% in April, after a year ago declined, followed by overwhelming household bills rising, including a sharp rise in water bills, council taxes, mobile and broadband tariffs.
Prime Minister Rachel Reeves said he was “disappointed” by the inflationary jump, but he has pledged to go “even faster” to his economic plan.
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She said:
“We’ve come a long way from the double-digit inflation we saw under the previous administration, but we’re determined to go faster to put more money in people’s pockets.”
Experts say inflation could also be driven high as many companies responded to last month’s move to raise national insurance contributions (NICS) and minimum wage by increasing prices.
Shadow Chancellor Sir Mel Stride has condemned tax increases that “damage” workers due to increased inflation.
He said: “We have left workers with the strength of inflation on our target, but our workers’ financial mismanagement is pushing up the cost of living for our families.
“Families are paying the price of the labour prime minister’s choice.”
Inflation, which exceeded last month’s forecast, could be more cautious inflation than its forecast, economists said, after the Bank of England cut it from 4.5% this month to 4.25%, economists said.
Rob Wood of Pantheon Macroeconomics said he expects inflation to remain at around 3.5% for the remainder of the year.
He said: “We believe the Monetary Policy Committee must proceed with caution.
“We’re following two more rate cuts this year, but it’s very close to reducing that to just one.”
An unwelcome increase above 3% comes after a recent rest.
ONS said overall housing, water and energy bills inflation increased by 7.8% per year. This was the best since June 2023.
Among these, according to ONS, water and sewerage fees rose 26.1% during April.
Acting ONS Director Grant Fitzner said:
“This year, water and sewerage bills have also risen significantly. Like the consumption tax on vehicles, we have pushed our headline rate to the highest level since the beginning of last year.”
Airfares also contributed to inflation jumps, rising 27.5% that month, mainly due to Easter timing, as it was the second-highest monthly rise since records began.
However, Fitzner added that these increases were “partially offset by a decline in prices for motor fuel and clothing driven by heavy discounts on children’s clothing and women’s footwear.”
Elsewhere, data showed that ONS’s preferred inflation rates, as well as the consumer price index, including owner-occupied homes, rose to 4.1% from 3.4% in March.
Meanwhile, index inflation rates for retail prices have been raised from 3.2% to 4.5%.
