UK inflation jumped to its highest level for over a year when official figures were released on Wednesday after “awful April” bill hikes sent the cost of living soaring.The rate of Consumer Prices Index inflation rose to 3.5% in April from 2.6% in March, the Office for National Statistics said.
Commenting on today’s inflation figures for April, ONS Acting Director General Grant Fitzner said: “Significant increases in household bills caused inflation to climb steeply.
“Gas and electricity bills rose this month compared with sharp falls at the same time last year due to changes to the Ofgem energy price cap.”
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Mr Fitzner added: “Water and sewerage bills also rose strongly this year as did vehicle excise duty, which all pushed the headline rate up to its highest level since the beginning of last year.
“This was partially offset by falling prices for motor fuels and clothing, driven by heavy discounting for children’s garments and women’s footwear.” It comes after Ofgem’s energy price cap rose by 6.4% in April, having fallen a year earlier, alongside a raft of bill hikes for under-pressure households, including steep increases to water charges, as well as rises for council tax, mobile and broadband tariffs, and TV licences among many others.But experts said inflation may also have been pushed higher as many firms responded to the Government’s move to raise national insurance contributions (NICs) and the minimum wage last month by increasing prices.The figures will be watched closely for clues as to when the Bank of England may look to cut rates again.
Shadow chancellor Sir Mel Stride blamed Rachel Reeves for the hike in inflation.He said: “This morning’s news that inflation is up – and now well above the 2% target – is worrying for families.“We left Labour with inflation bang on target, but Labour’s economic mismanagement is pushing up the cost of living for families – on top of the £3,500 hit to households from the Chancellor’s damaging jobs tax.“Higher inflation could also mean interest rates stay higher for longer, hitting family finances hard.“Families are paying the price for the Labour Chancellor’s choices.”
“Clearly disappointing,” says Chancellor Rachel Reeves on Wednesday’s inflation increase.
Reeves said : “I am disappointed with these figures because I know cost of living pressures are still weighing down on working people.“We are a long way from the double-digit inflation we saw under the previous administration, but I’m determined that we go further and faster to put more money in people’s pockets.“That’s why we have increased the minimum wage for millions of working people, frozen fuel duty to protect commuters and struck three trade deals in the past two weeks that will go towards cutting bills.”
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