UK Inflation Surges to 3.5% in April

UK inflation surged to 3.5% in April, its highest in over a year and above both analyst and Bank of England forecasts, primarily due to a 6.4% rise in Ofgem's energy price cap and significant hikes in water, council tax, and broadband charges. The Office for National Statistics reported that these increases were partially offset by falling motor fuel and discounted clothing prices. The spike, labeled 'Awful April,' has led the Bank of England to anticipate inflation will stay above its 2% target for the rest of 2025, complicating future monetary policy decisions. Persistent wage and service price pressures have tempered expectations of further or deeper interest rate cuts. Chancellor Rachel Reeves acknowledged ongoing cost of living challenges despite improvements from prior double-digit inflation. The latest figures have heightened concerns about the pace of monetary easing in the UK.