Inflation: April rate of 3.5 per cent is bigger jump than expected after household bills whammy

While nowhere near the 10 per cent rates that were seen in the second half of 2022 and first few months of 2023, the April 2025 consumer prices index rate of 3.5 per cent is a big jump from March’s 2.6 per cent figure. It’s more than the 3.3 per cent that economists had forecast.

The figures have been released by the Office for National Statistics. The government’s target is to keep inflation to two per cent.

It comes after Ofgem’s energy price cap rose by 6.4 per cent in April, having fallen a year earlier, alongside a raft of bill rises for under-pressure households, including steep increases to water charges, council tax, mobile and broadband tariffs.

ONS acting director-general Grant Fitzner said: “Significant increases in household bills caused inflation to climb steeply. Gas and electricity bills rose this month compared with sharp falls at the same time last year due to changes to the Ofgem energy price cap.

“Water and sewerage bills also rose strongly this year, as did vehicle excise duty, which all pushed the headline rate up to its highest level since the beginning of last year.”

Chancellor Rachel Reeves said: “I am disappointed with these figures because I know cost of living pressures are still weighing down on working people.

“We are a long way from the double-digit inflation we saw under the previous administration, but I’m determined that we go further and faster to put more money in people’s pockets. That’s why we have increased the minimum wage for millions of working people, frozen fuel duty to protect commuters and struck three trade deals in the past two weeks that will go towards cutting bills.”

Shadow chancellor Sir Mel Stride blamed Rachel Reeves for the hike in inflation.

He said: “This morning’s news that inflation is up – and now well above the two per cent target – is worrying for families. We left Labour with inflation bang on target, but Labour’s economic mismanagement is pushing up the cost of living for families – on top of the £3,500 hit to households from the Chancellor’s damaging jobs tax.

“Higher inflation could also mean interest rates stay higher for longer, hitting family finances hard. Families are paying the price for the Labour Chancellor’s choices.”