UK’s inflation rate rose more sharply than expected in April, driven by a surge in energy and transport costs, according to data released by the Office for National Statistics (ONS).
Gatekeepers News reports that the headline rate increased to 3.5% in the year to April, up from 2.6% in March, and above economists’ forecasts.
Grant Fitzner, ONS acting director general, said: “Significant increases in household bills caused inflation to climb steeply. Gas and electricity bills rose this month compared with sharp falls at the same time last year due to changes to the Ofgem energy price cap.”
The largest upward contributions came from housing and household services, transport, and recreation and culture. Clothing and footwear, meanwhile, were the biggest drag on prices. Core inflation, which excludes more volatile energy, food, alcohol, and tobacco prices, rose by 3.8% in the year to April, up from 3.4% in the 12 months to March.
Chancellor Rachel Reeves said: “I am disappointed with these figures because I know cost of living pressures are still weighing down on working people. We are a 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.”
The rise in inflation is likely to add to speculation over whether interest rates will need to remain elevated for longer. Experts warn that higher inflation diminishes spending power and erodes savings, making it difficult for people to maintain their living standards.
