UK inflation jumps to 3.5%, hitting highest level in over a year

The headline rate of UK inflation jumped by more than expected to 3.5% in April, this morning's ONS report showed

Summary

  • UK inflation hit 3.5% in April, according to this morning's report from the Office for National Statistics (ONS). This is the highest level in over a year.
  • The Bank of England had been forecasting a 3.4% reading.
  • “Awful April” is largely to blame, with a range of bills going up in April each year, including energy bills, water bills and council tax.
  • The inflation report comes less than two weeks after the Bank of England announced its latest interest rate cut, bringing the base rate to 4.25%.
  • Since then, the Bank’s chief economist Huw Pill has warned that interest rate cuts have been coming “a little too fast” given developments with inflation.
  • Pill voted against the recent cut but was outnumbered by other committee members.
Refresh

April’s inflation figures due tomorrow

“Biggest test for the MPC so far this year”

What about core and services inflation?

ING: “April is always a crazy month for UK inflation”

Huw Pill on “the courage not to act”

What could April’s tax changes mean for inflation?

How does inflation affect your cash savings?

That concludes our preview analysis for today, but we will be back tomorrow morning before the inflation news breaks at 7.00am. Join us then.

Welcome back – less than half an hour to go

Recap: which bills went up in April?

BREAKING: Inflation jumps to 3.5%

Inflation higher than the BoE anticipated

Significant jumps in core and services inflation

Housing and household services – the biggest contributor

Water bills added to soaring costs

Transport costs pushed higher by car tax and a late Easter

Did the National Insurance hike make a difference?

What does the inflation jump mean for your personal finances?

"Personal budgets may come under pressure once again"

Bad news for mortgage rates

"Stagflation is a central banker’s living nightmare"

Savers facing a double hit of falling rates and rising inflation

House prices rise by 6.4% annually

How have investment markets reacted to the latest inflation data?

The importance of emergency savings

Have interest rate expectations shifted?

Is inflation as bad as it looks?

Could the BoE ignore the increase in services inflation?

That concludes our inflation coverage for today. Thank you for joining us. We will be back again next month with more live reporting and analysis. In the meantime, here are some important economic dates for your diary.