The UK's inflation rate has risen to 3.5% in April 2025, which is the highest it has been since February of the previous year, as reported by the Office for National Statistics.
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This increase is primarily attributed to significant hikes in household bills, including energy costs, along with higher prices for food, vehicle duty, and airfares. While the rise is greater than what economists had anticipated, they generally believe that many of the contributing factors are transitory. The Bank of England has previously forecasted that inflation will reach its peak at 3.7% between July and September 2025 before reverting to the target rate of 2%.
Chancellor Rachel Reeves expressed her disappointment with the inflation figures, but emphasized the necessity of her economic policies for the sake of the country's fiscal stability. Meanwhile, the Conservative Party accused her of making choices that are detrimental to families' financial well-being, while the Liberal Democrats demanded bold measures to assist millions of households facing financial strain.
Some relief is found in the slight decrease in petrol and diesel prices, which fell by 3p and 3.1p respectively, and a 0.4% drop in the cost of clothing and footwear. However, the overall trend indicates that the cost of living continues to be a significant concern for many in the UK. The Bank of England's previous statement suggested that inflation would likely peak in the coming months before returning to its target level, which is consistent with the expectations of many economists. The situation will be monitored closely as it unfolds, and further adjustments to fiscal policy may be considered if the inflation rate does not decrease as expected.
BBC