The British inflation rate has passed to the highest for more than a year

An increase in the cost of household bills has grown inflation in the United Kingdom at its highest rate in more than a year.

Inflation was 3.5% in April, compared to 2.6% in March, according to official data.

The prices of water, gas and electricity all increased on April 1 with a multitude of other invoices, pushing inflation more above the target of the Bank of England by 2%.

The biggest contributors to the rise in the rise were “housing and household, transport, leisure and culture services,” said the national statistics office.

The April inflation rate is higher than economists predicted.

The rate of price increases should be around 3.3%.

The Bank of England previously declared that it expects inflation to increase to 3.7% between July and September 2025 before returning to its target by 2%.

In April, households were struck by a sharp increase in energy and water bills and – to a lesser extent – higher food prices. Companies have also been hit by higher costs – an increase in national employers’ insurance contributions and a higher minimum wage.

The ONS indicates that the prices of water and sewers increased by 26.1% in April, which, according to him, has been the highest increase since at least February 1988.

It is a combination of these factors that increased higher inflation.

James Cuthbertson says that his brewery company will have to increase the beer prices for the first time in two years due to its cost increase and salary bill.

“It is certainly the most difficult that it has ever been, and there have been difficult times, but the cost increase was paralyzing,” he said.

James is a partner of Lake Dan Brewing Company, which officially opened as a craft brewer in 2023 and now has a pub in Hawkhurst, Kent.

He says that his main costs, water bills, yeasts and hops have all increased between 5% and 10%. He says it made “difficult to be positive”.

“Everyone must transmit costs to consumers who have no money. It does not work if we are crushed in the middle, and I think it is the greatest challenge,” he said.

Grant Fitzner, Acting Managing Director of ONS, said: “Significant increases in household bills have caused a sharp increase in inflation.

“Gas and electricity bills increased (in April) compared to net falls at the same time as last year due to changes in the OFGEM energy price ceiling.”

Chancellor Rachel Reeves said she was “disappointed” figures and cited the minimum wage of April and the decision to freeze the fuel service to help the pepole in pressure from the cost of living.

Mel Stride, Chancellor of the Shadow, said that the figure “worries about families”.

“We have left the workforce with inflation on the target, but the economic mismanagement of work increases the cost of living for families,” he added.

Paul Dales, chief economist of the United Kingdom at Capital Economics, said: “These figures will make the bank more alert on the possibility that this inflation rebound is greater and lasts longer than it had thought.”

The increase means that the governor of the Bank of England – whose work consists in maintaining inflation to its 2% objective – will have to write a letter to the Chancellor.

One of the bank’s key tasks consists in maintaining inflation to 2% and it drops or increases interest rates to achieve it.

They will have to explain why inflation has increased by more than 1% compared to this and what is the plan to reduce the inflation rate to 2%.