UK inflation unexpectedly surges to 3.5% after rate cuts

In April, UK inflation increased to 3.5%, exceeding analysts’ expectations of 3.3%. Core inflation, which excludes volatile items, surged to 3.8%, largely due to housing, transport, and recreation expenses.

Water and sewerage bills experienced a staggering 26.1% rise in just one month, marking the largest increase since 1988. These cost pressures are challenging households already facing high living expenses.

Following a recent interest rate cut to 4.25%, the unexpected inflation rise raises concerns for the Bank of England’s monetary policy. Economists suggest that future rate cut decisions will be cautious in light of ongoing inflation pressures.