UK inflation surged to its highest level for more than a year in 'Awful April' after households were hit by a raft of bill increases.
The headline CPI rate was up from 2.6 per cent in March to 3.5 per cent last month, a peak not seen since January 2024.
Worryingly, it was significantly more than the 3.3 per cent analysts had pencilled in, with Chancellor Rachel Reeves acknowledging the figures were 'disappointing'. Core CPI - excluding energy, food, alcohol and tobacco - was also at the highest for a year.
The grim data will fuel Bank of England concerns about underling pressures, with chief economist Huw Pill having already warned that interest rate cuts have been too fast.
Experts immediately suggested that Threadneedle Street might pause reductions at the next monetary policy committee meeting next month. The Bank had forecast that inflation would top out at 3.5 per cent in the third quarter of the year.
