UK inflation jumps to 3.5% in April

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Inflation in the UK rose more than expected to an increase of 15 months at 3.5 percent in April, prompting traders to expand the scope of bets on additional interest rates from England Bank.

Wednesday from the National Statistics Office was higher than 3.3 percent of the analysts covered by Reuters and 2.6 percent March.

On S said the rise is driven by increasing energy costs after the organizers raised the ceiling of the family, in addition to a jump in water bills. The top aircraft also contributed.

The inflation of services, a main measure of the basic price pressures of price clips, increased to 5.4 percent in April, stimulating 4.8 percent expected by analysts at 4.7 percent.

Traders cut their bets to the full prices in reducing a quarter of a point by only this time of next year, compared to two before the data, according to the levels involved in the bachelors markets.

After issuing the numbers, the pound is strengthened, an increase of 0.5 percent against the dollar at $ 1.344.

The Bank of England has pledged to continue with a “gradual and bilateral” approach to additional price discounts after the costs were reduced four times since August.

However, the Monetary policy Committee has been divided into the decision this month to reduce prices by a quarter of a point to its lowest level since 2023. The chief economist Hoo Bells said it is afraid that the Bank of England would reduce great faster and that the momentum behind low inflation was “arrogant”.

“It highlights the brutal strike of the family and business from many bills in April and the tax increase,” said Surin Thero, Director of Economics at the Accountants Authority, ICAEW, last month.

In response to inflation figures in April, Chancellor Rachel Reeves said she was “disappointed” and admitted that “the cost of living pressures still puts its weight on the workers.”

She added: “We are far from dual inflation in the numbers that we have seen under previous management, but I am determined to go further and faster to put more money in people’s pockets.”

The Rivs increased in the national insurance contributions to the employer.

Mel Strad, the shadow consultant, has returned, saying that “families pay the price of the options of the labor consultant.”

The Bank of England expects inflation to reach 3.7 percent later this year before returning to its 2 % target in 2027.