UK inflation surges to 3.5% in April as household bills climb in 'awful April'

UK inflation surged to 3.5% in April, its highest in over a year, driven by significant increases in household bills across various sectors. The Office for National Statistics reported a rise from 2.6% in March, surpassing the Bank of England's 2% target. Core inflation also rose, reflecting pressures from rising costs related to energy and other services. The government's recent tax increases and wage hikes contributed further to these inflationary trends, raising concerns about the persistence of inflation and its impact on the economy.

Significant increases in household bills caused inflation to climb steeply," said Grant Fitzner, acting director general at the ONS. "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 persistence of inflation may be a bit stronger than previously thought, and businesses could be passing on more of the recent rises in taxes," said Paul Dales, chief UK economist at Capital Economics.

Read at Business Matters