‘Awful April’ makes its mark in the UK: British inflation significantly higher than expected

As the British leave 'Awful April' behind, the impact becomes clear. Inflation in April reached 3.5%, well above the 3.3% economists had predicted and higher than the 2.6% recorded a month earlier. This marks the largest monthly inflation increase since 2022, when prices rose by more than 10%.

The sharp rise reverses the declining trend in price growth. In March, inflation had dropped from 2.8% to 2.6%. April's data shows the increase was primarily driven by core inflation, which excludes volatile products like energy, food, alcohol, and tobacco. Core inflation rose by 3.4% in March.

Within core inflation, significant price hikes were seen in housing, household services, transport, and recreation and culture. Meanwhile, products like clothing and shoes saw slower price increases, partially offsetting the overall rise.

Economists had anticipated an inflation rise in April. British media dubbed the month 'Awful April' due to announced price hikes in internet, phone, water, and energy services. Additionally, wage costs for many businesses increased due to higher minimum wages and employer payroll taxes.

The Bank of England had previously warned of rising inflation, forecasting a rate of 3.7% in the third quarter, driven mainly by fixed costs like energy and water prices.