UK Inflation Jumps to Highest Level in Over a Year

UK Inflation Soars to 1-Year High: Energy Bills Fuel Cost of Living Crisis LONDON, May 22, 2025 – UK inflation surged to its highest level in over a year, jumping to 3.5% in April 2025, according to official figures released today. This represents a significant increase from the 2.6% recorded in March. The sharp rise is primarily attributed to substantial increases in energy and water bills, placing a considerable strain on households and businesses across the country. Economists had anticipated an increase in inflation, but the magnitude of the rise has surprised many. Joel Hills, ITV News Economics Editor, commented from Leeds: "The rise in water and energy bills, which we knew about last month, was larger than economists were predicting. Price rises are quite broad-based, affecting mobile phone and broadband contracts, restaurant meals, and even package holidays." The British Retail Consortium, representing major supermarkets, is pointing fingers at the government's recent budget, claiming it will further fuel inflation. The Bank of England has also expressed concern, stating that the budget could significantly impact inflation in the months ahead. The Chancellor has expressed disappointment and announced a U-turn on winter fuel payments, suggesting the government is under pressure to address the cost of living crisis. The situation underscores the ongoing economic challenges facing the UK and highlights the need for effective policy responses to mitigate the impact on vulnerable households.