‘Awful April’ brings surprise inflation rate rise to 3.5%

Inflation rose to 3.5 per cent last month the largest month-onmonth rise in two and a half years after a perfect storm” of price increases in awful April” sent the cost of living soaring.

- KARL MATCHETT

While UK inflation had been gradually coming down this year, from 3 per cent in January, the rise for April’s Office for National Statistics (ONS) data – up from 2.6 per cent in March – was not unexpected as it accounts for bill hikes, energy costs increasing and changes to social housing costs.

April also saw a later than usual Easter weekend, as well as businesses dealing with changes to labour costs, plus the uncertainty created by the beginning of Donald Trump’s tariffs.

Martin Sartorius, principal economist at Confederation of British Industry, said: “April’s rise in inflation was widely expected, driven by a perfect storm of price pressures such as higher employer national insurance contributions, the national living wage increase, and a hike in the Ofgem price cap.”

January 2024 was the last time the consumer price index (CPI) rate of inflation was running above 3.5 per cent (at the time, 4 per cent). Data for CPIH, which includes costs related to owning and running a household, such as mortgage repayments and insurances, was running at 3.4 per cent in March but came in at 4.1 per cent for April.

Core inflation, which is CPI excluding energy, food, alcohol and tobacco, rose by 3.8 per cent in the 12 months to April 2025, up from 3.4 per cent in March. Reacting to the rise in inflation, Rachel Reeves said she was disappointed by the increase but said the government will go “further and faster” in a bid to cut bills.