Inflation in Britain jumps to the highest level in more than a year
Britain's Office for National Statistics said the annual inflation rate rose more than expected in April to 3.5 percent from 2.6 percent in March, the highest reading since January 2024 and the biggest increase in the rate since 2022 when inflation was significantly high.
A Reuters poll of economists' opinions indicated a reading of 3.3 percent in April, while the Bank of England expected earlier this month that inflation would reach 3.4 percent.
This comes after the Office of Gas and Electricity Markets raised the energy price cap by 6.4 percent last April, after falling the previous year, in addition to a range of bill rises for stressed households, including sharp increases in water bills, council tax, mobile phone charges and wider fees.
The data is likely to reduce expectations in financial markets for interest rate cuts more than once by the end of 2025.
Earlier this month, the Bank of England predicted inflation would peak at 3.5 percent this year.
The bank reduced interest rates by a quarter of a percentage point to 4.25 percent on May 8.
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