British inflation inflation will increase to three.5percentin April, whereas the family calculations enhance

A customer was considered in a supermarket on January 15, 2025 in London, England, on a shelf.

Dan Kitwood | Getty Images News | Getty pictures

The annual inflation rate in Great Britain was 3.5% in April and, according to data, which was published by the Office for National Statistics (ONS) on Wednesday.

Economists surveyed had expected the consumer price index to reach 3.3% in the twelve months to April.

The latest data publication corresponds to a latest trend in cooling inflation, with the price course slowing down to 2.8% in February and 2.6% in March.

The core inflation that excludes fleeting energy, food, alcohol and tobacco prices rose by 3.8% in the year until April, compared to 3.4% in the twelve months to March.

The biggest upward posts for the monthly change in the inflation rate came from residential and household services, means of transport as well as recreation and culture. At the other end of the spectrum, the largest – partly unusual – downward contribution of clothing and shoes, the ONS said in a press release.

The data showed the increasing pressure on British households because the prices for electricity, gas and other fuels rose by 6.7% in April. The prices for water and sewer rose by 26.1% in the month to April and mark the largest monthly increase since at least February 1988, according to the ONS.

The British Chancellor Rachel Reeves said on Wednesday that she is “disappointed” by the latest data and “still burden the cost of living for the workers”.

Economists had expected the increase and largely attributed to the increase in the energy price limit-the maximum price that energy suppliers can invoice for customers, including a number of one-off adjustments, including the domestic tax increases introduced in April, the Easter holidays and the latest good weather.

Nevertheless, the data will disappoint the Labor government that aims to reduce the pressure to live on British consumers. It will also be food for the thoughts for the political decision -makers of the Bank of England, who lowered their most important interest rate to 4.25% at their last meeting in early May.

The latest inflation data could cause “a bit stinking” at Central Bank, Nicholas Hyett, investment manager of the Broker Wealth Club.

“Two members of the MPC [monetary policy committee] Wanted to leave the installments unchanged and may feel confirmed by today's number. A higher core inflation will be particularly worrying, since this measure for inflation in Germany should be easier for the bank to influence, ”he said.

Bank of England expectations

The BOE had generally signaled that in the third quarter it expected a temporary increase in inflation to 3.7%, partly due to hikes of energy prices and in some regulated prices such as water bills.

The forecast increase in inflation was not enough to reduce the Boe from the reduction of its key interest rate, which had the continued uncertainty in terms of economic growth and trade tariffs. Nevertheless, the Boe was at the time that the further interest reductions were “gradually and cautiously” because the inflation rate lowered the target of 2%.

However, the pace of interest cuts could change if US trade tariffs dampen the global demand and grow growth in Great Britain more than expected.

Last week there was rare good news about the growth front, with the preliminary quarterly gross domestic product data (GDP) showing an expansion of 0.7% in the economic production of Britain.

Economists said that the impressive data would probably not be replicated in the second quarter, and found that the pressure on the bumpers in the first quarter was largely due to the activity that was preferred before potential US tariffs and the increase in domestic corporate taxes in April.

The latest inflation data “will fulfill a relatively loud report at a time when the Bank of England is tried to determine what to do next,” said Julien Lafargue, Chief Market Strategist at Barclay's private bank, in E -Mail comments on Tuesday.

“In addition to the short -term distortions, however, we are of the opinion that the general direction of travel for British inflation is lower. This year this year should consider at least a few more interest reductions and support the favorable economic conditions for the future,” he added.