UK Inflation Hits 3.5% Highest in Year After April Bill Increases

UK inflation surged to 3.5% in April, marking its highest level in over a year, primarily driven by significant increases in essential household bills such as energy, water, and council tax. This rise, which exceeded economists' expectations of 3.3%, was fueled by a 6.4% increase in the Ofgem energy price cap, water charges rising by around £10 per month, and a 5% hike in council tax, alongside higher costs for mobile, broadband, and TV licenses. Despite some offsetting declines in motor fuel and clothing prices, the overall inflation spike reflects one-off adjustments including the timing of Easter and increases in National Insurance contributions. The inflationary pressure complicates the Bank of England's monetary policy, which has already implemented several interest rate cuts since last year, although further reductions may still be possible as inflation is expected to trend lower in the longer term. Chancellor Rachel Reeves faces challenges balancing the economic growth with the dampening effect of rising consumer bills on spending. The inflation data underscores ongoing cost-of-living pressures for UK households amidst broader economic uncertainties.