UK Inflation Spikes to 3.5% After April’s Surge in Household Bills

[Social Media]

 

UK Inflation Spikes to 3.5% After April’s Surge in Household Bills

 

UK inflation jumped to 3.5% in April, the highest rate since January 2024, driven largely by widespread hikes in essential household bills. The Office for National Statistics (ONS) confirmed the increase, up sharply from March’s rate of 2.6%, catching many economists off guard who had predicted a smaller rise to 3.3%.

 

The ONS attributed the spike to what many are calling an "awful April" for consumers. “Significant increases in household bills” were the key factor, according to the report. Energy prices rose by 6.4% under the government’s energy price cap, council tax bills increased by approximately 5%, and water and sewerage costs saw a staggering 26.1% surge. This last figure marks the steepest rise in water bills since February 1988, just before the industry was privatised.

 

 

Additionally, broadband, mobile, and TV licence fees all saw increases, compounding the pressure on UK households already stretched by years of high living costs. The renewed inflationary pressure is now raising serious questions about the timing of potential interest rate cuts by the Bank of England.

 

The consumer prices index, a key measure used to monitor inflation, plays a major role in determining the Bank of England’s monetary policy. Since December 2021, the Bank aggressively raised interest rates to contain inflation during the early days of the cost-of-living crisis. However, as inflation eased, it implemented four cuts since August last year. Prior to the latest ONS data, financial markets had priced in two more rate cuts for this year, though none were expected at the next Bank meeting in mid-June.

 

Following the unexpected inflation jump, mortgage brokers have warned that mortgage rates will “edge upwards” in the coming weeks. Hopes of an interest rate cut next month have all but vanished. “This increase is certainly going to stall the recent mortgage rate improvements, and with inflation due to stay above 3% for the rest of the year it may be too much to expect further base rate cuts in 2025,” said Justin Moy, managing director at EHF Mortgages, in comments to Newspage.

 

Craig Fish, director at Lodestone Mortgages and Protection, echoed the sentiment. “This will hit mortgage borrowers hard, especially those coming off fixed rates or looking to buy,” he said, noting that swap rates—used by banks to set mortgage pricing—are expected to rise in response to the inflation figure.

 

The UK now holds one of the highest inflation rates among G7 countries. In April, inflation in Canada, the US, France, Italy, and Germany all remained below the UK’s 3.5%. The Eurozone, by contrast, recorded an inflation rate of just 2.2%. Only Japan, which saw prices rise at 3.6% last month, appears to be on a similar trajectory, though its April data has not yet been published.

 

 

Business leaders are also sounding the alarm. Stuart Morrison, research manager at the British Chambers of Commerce, warned of more price hikes to come. “Businesses are facing a perfect storm of cost pressures, which is fuelling inflation alongside rising household bills,” he said. “While April’s jump was expected, the scale, to 3.5%, is concerning.”

 

He added that additional costs such as national insurance increases for employers, minimum wage rises, and global tariffs are likely to push prices even higher. “Our research shows 55% of businesses are expecting to put up prices in the coming months,” Morrison said.

 

“Firms urgently need to see a clear tax roadmap identifying when the burdens of national insurance and business rates will ease,” he added. “Upcoming strategies on industry, trade and infrastructure must live up to business expectations and help drive investment.”

 

As both consumers and businesses brace for more financial strain, April’s inflation data serves as a stark reminder that the UK’s economic recovery from the cost-of-living crisis may be more fragile than hoped.

 

  Adapted by ASEAN Now from Sky News  2025-05-22

 

 

[The Cyclist]

 

3 hours ago, Social Media said:

He added that additional costs such as national insurance increases for employers, minimum wage rises, and global tariffs are likely to push prices even higher. “Our research shows 55% of businesses are expecting to put up prices in the coming months,” Morrison said.

 

They were told this prior to changing the NI rates.

 

Rachel from Customer Complaints knew better. And of course this will push inflation even higher.

 

C'mon Labour. 10% by September would be nice 😀😀

 

More tax rises coming in the Autumn, more nails in Labours coffin.

[JonnyF]

Rachel from accounts and her budget for recession, plus Miliband and his net zero doomsday cult. The combination is really taking a grip on the UK economy, and not in a good way. 

 

The lunatics are running the asylum, and their insanity is now coming home to roost. 

 

I hope those Labour voters are proud of themselves. 

[Chomper Higgot]

7 hours ago, Social Media said:

water and sewerage costs saw a staggering 26.1% surge

This as the head of Thames Water has been caught out lying through his teeth to the Parliamentary Committee examining the failures of the privatized water industry.

 

A man heading a business with an absolute monopoly of the water supply to millions of British consumers now begging the Government and consumers to take on the £Billions of debt his company has run up together with offloading on consumers the costs of repairs and infrastructure development that his business has failed to provide over 35 years.

 

Runs up massive debts, fails to invest, creams off profits and lies to Parliament that creditors agreed for fat bonuses to paid out of the financial rescue package to the directors who have sunk the business.

 

Yet another failed Tory privatization providing  a text  book example of privatized profits and socialized costs.

 

Water and sewage costs up 26.1% while water company directors make off like bandits.

 

Utterly disgusting.

 

 

 

[spidermike007]

In the US it is closer to 20%. The government numbers are pure hogwash, they're based on completely irrelevant commodities like magnesium ore, and they have nothing to do with our daily lives. I travel back to the US at least twice a year and every single one of my staples goes up 10 to 15% every 6 months, what does that tell you?

[Thingamabob]

While the inflation rate in the UK heads inexorably upwards the country sits on massive domestic reserves of oil, coal and gas which the govt refuses to exploit.

[Chomper Higgot]

4 hours ago, Thingamabob said:

While the inflation rate in the UK heads inexorably upwards the country sits on massive domestic reserves of oil, coal and gas which the govt refuses to exploit.

Oil and gas prices are set by the international market, the UK would pay that international market price regardless of the source.

 

On the other hand renewable energy prices are not set by the international market.

 

 

 

[Stocky]

4 hours ago, Thingamabob said:

While the inflation rate in the UK heads inexorably upwards the country sits on massive domestic reserves of oil, coal and gas which the govt refuses to exploit.

Most of the UK's coal 'reserves' aren't accessible, the closure of the coal mines in the 80s rendered what remained in those mines financially unworkable. The UK has little in the way of open pittable coal, most is narrow seam suitable for underground mining which is expensive.

[kickstart]

4 hours ago, Thingamabob said:

While the inflation rate in the UK heads inexorably upwards the country sits on massive domestic reserves of oil, coal and gas which the govt refuses to exploit.

The environment, my dear friend the environment, the tree huggers are having their own way, digging and drilling for oil and gas hurts the environment.

My job has been in farming, and farmers are getting strangled by red tape, cannot do this and that, they are not farmers anymore, just stewards of the land.

[Chomper Higgot]

20 minutes ago, kickstart said:

The environment, my dear friend the environment, the tree huggers are having their own way, digging and drilling for oil and gas hurts the environment.

My job has been in farming, and farmers are getting strangled by red tape, cannot do this and that, they are not farmers anymore, just stewards of the land.

Don’t you just miss the days of farmers spraying toxic chemicals on the land.

 

I do hope you didn’t breathe any of that stuff in.