UK INFLATION LEAPS TO HIGHER-THAN-EXPECTED 3.5% – The annual rate of consumer price growth leapt to 3.5% in April from 2.6% in March
Inflation surged by more than expected in April including in areas watched closely by the Bank of England, according to figures published that are likely to keep the central bank on its path of gradual interest rate cuts.
The annual rate of consumer price growth leapt to 3.5% in April from 2.6% in March, the Office for National Statistics said, the highest reading since January 2024 and the largest increase in the rate since 2022 when inflation was rocketing.
A poll of economists had pointed to a reading of 3.3% in April while the Bank of England earlier this month projected inflation of 3.4%.
The data are likely to further diminish expectations in financial markets that interest rates will be cut more than once by the end of 2025.
April saw increases in gas, electricity and water prices, alongside higher taxes on employers – all of which are likely to push up prices.
