Britain’s annual inflation rate rose more than anticipated in April, driven by sharp increases in energy and water bills, according to official data released on Wednesday, May 21.
The Consumer Prices Index climbed to 3.5 percent last month, up from 2.6 percent in March, the Office for National Statistics (ONS) reported.
This exceeded analysts’ expectations of a rise to 3.3 percent. At 3.5 percent, the inflation rate reached its highest level since the start of 2024, the ONS added.
“I am disappointed with these figures because I know cost-of-living pressures are still weighing down on working people,” Finance Minister Rachel Reeves said in a statement.
Starting in April, UK regulators permitted private companies to raise household bills, factoring in fluctuations in oil and gas prices as well as the financial struggles of debt-laden water suppliers.
ALSO READ: Small Doctor laments rising drug abuse among promising Nigerian youths
“Significant increases in household bills caused inflation to climb steeply,” said Grant Fitzner, acting director general of the ONS, in a statement.
Gas and electricity bills rose… compared with sharp falls at the same time last year.
Fitzner also pointed out that “water and sewerage charges saw notable increases, along with vehicle excise duty,” all of which contributed to pushing the headline inflation rate to its highest point since early last year.
However, analysts expect energy bills to ease starting in July, following substantial declines in oil prices, partly attributed to U.S. President Donald Trump’s tariff measures.
In addition to rising costs, businesses faced added pressure in April due to a tax increase and a hike in the minimum wage, both introduced by the Labour government after its July election victory, ending 14 years of Conservative leadership.
- FOLLOW US ON INSTAGRAM: Get the most important news on your social media feed
- FOLLOW US ON FACEBOOK: Get the most important news on your social media feed
- FOLLOW US ON X: Get the most important news on your social media feed
Meanwhile, Conservative economy spokesperson Mel Stride criticized the inflation surge, blaming it on “Labour’s economic mismanagement.“
“Families are paying the price for the Labour… choices,” he added, noting that businesses are passing rising costs on to consumers.
Analysts suggested that the latest figures might prompt the Bank of England to slow the pace of its recent interest rate cuts.
“The BoE’s next move is far from straightforward,” remarked Richard Flax, chief investment officer at wealth management firm Moneyfarm.
The central bank is likely to remain cautious, potentially delaying rate cuts until there’s clearer evidence that inflationary momentum is genuinely easing.
READ MORE: DIASPORA LENS
