Britain’s annual inflation rate climbed sharply to 3.5 percent in April 2025, up from 2.6 percent in March, surpassing analysts’ expectations of a rise to 3.3 percent, according to the Office for National Statistics (ONS) on Wednesday, May 21, 2025. The Consumer Prices Index (CPI) reached its highest level since January 2024, driven primarily by significant increases in household bills. ONS acting director general Grant Fitzner attributed the spike to rising gas and electricity bills, which contrasted with sharp declines seen a year earlier, alongside strong increases in water and sewerage bills and vehicle excise duty.
Finance Minister Rachel Reeves expressed disappointment, acknowledging the ongoing cost-of-living pressures impacting working people. UK regulators permitted private companies to raise household energy and water bills from April, reflecting fluctuations in oil and gas markets and the financial burdens of indebted water providers. However, analysts predict a potential relief in energy bills starting in July 2025, following recent oil price drops linked to US President Donald Trump’s tariff policies, which could ease some of the inflationary pressure.
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