UK Inflation Soars to 15-Month High Amid Rising Utility Bills
London (Parrot Newspaper) – British households are feeling the heat again as inflation surged to a 15-month high in April, driven by sharp increases in energy and water bills. According to data released Wednesday by the Office for National Statistics (ONS), the Consumer Prices Index (CPI) rose to 3.5%, up from 2.6% in March—surpassing economists’ forecasts of a 3.3% uptick.
The rise marks the highest inflation rate since early 2024, reigniting concerns over the cost of living just months after the Labour government took office.
“I am disappointed with these figures because I know cost of living pressures are still weighing down on working people,” said Chancellor Rachel Reeves, acknowledging the financial strain on millions of Britons.
The surge comes after regulators approved increases in household utility charges in April, citing shifts in oil and gas prices and the financial woes of water companies. ONS acting director general Grant Fitzner noted that gas, electricity, water, and sewerage bills all saw significant hikes, adding pressure to household budgets.
Vehicle excise duties also rose, contributing further to the overall jump in inflation.
While analysts expect some relief in July—when energy bills are forecast to fall following a drop in global oil prices—April’s figures have already triggered political finger-pointing.
Conservative economic spokesperson Mel Stride blamed the Labour government’s recent policies, including a hike in the minimum wage and business taxes, for the inflation spike.
“Families are paying the price for Labour’s economic mismanagement,” Stride said, accusing the ruling party of pushing businesses to pass increased costs onto consumers.
The inflation surprise is also complicating matters for the Bank of England. After reducing its benchmark interest rate to 4.25% earlier this month, following three prior cuts, the central bank may now reconsider its pace of monetary easing.
“With price pressures rising again, the Bank of England is likely to proceed cautiously,” said Richard Flax, chief investment officer at Moneyfarm. “Rate cuts may be delayed until there’s stronger evidence that inflation is genuinely cooling.”
UK Inflation Soars to 15-Month High
As the government battles economic headwinds and consumers grapple with rising costs, all eyes are now on July’s energy price changes—and how they might shape the inflation outlook for the rest of the year.