Inflation in the UK rises to 3.5 % in April with the rise in home bills

The annual inflation rate in the United Kingdom was 3.5 % in April, when it reached the expectations of the analysts above, according to the data issued by the National Statistical Office (ONS) on Wednesday.

The economists of Reuters expected the consumer price index to reach 3.3 % in the twelve months until April.

The latest version of data is against the last trend of cooling, with an increase in the price rate to 2.8 % in February and 2.6 % in March.

The basic inflation, which excludes volatile energy, food, alcohol and tobacco, increased by 3.8 % in the year to April, up from 3.4 % in the twelve months to March.

The largest escalating contributions to the monthly change in the rate of inflation from housing, home services, transportation, entertainment and culture. On the other end of the spectrum, the descending contribution – which was partially compensated – was of clothes and shoes, was. Ons said in a press release.

The data highlighted increasing pressure on British families, as the prices of electricity, gas and other fuel increased by 6.7 % in the year to April. On S said that water and sanitation prices increased by 26.1 % a month to April, which represents the largest monthly rise since February 1988 at least.

British Chancellor Rachel Reeves said on Wednesday that she was “disappointed” from the latest data and that “the cost of living pressure is still weighing on workers.”

Economists expected an increase, largely attributed to the maximum energy-maximum price of prices that energy suppliers can impose fees on customers-in addition to a number of modifications for one time including the high local business tax provided in April, the last Easter holidays and the last good weather.

However, the data will disappoint the work government, which aims to lower the cost of living pressure on British consumers. It will also be a food for thinking for policymakers at the Bank of England, which reduced the main interest rate to 4.25 % in its last meeting in early May.

Nicholas Heat, investment manager of Broker Wealth Club, said on Wednesday that the latest inflation data had “caused a bit of the unpleasant smell in the central bank.

He said: “Two members of the Monetary Policy Committee (Monetary Policy Committee) wanted to leave prices unchanged, and they may feel well estimated because of today’s number. High basic inflation will be especially important because this measure of the inflation that was created locally must be easier for the bank.”

Bank of Interag is widely indicated It expects a temporary increase in inflation To 3.7 % in the third quarter, partly due to the high energy prices and in some regulation prices, such as water bills.

The expected increase in inflation was not enough to deter the Bank of England to reduce the main interest rate amid constant uncertainty about economic growth and commercial tariffs. However, on an inflationary pressure, the Bank of England insisted at the time that any other interest rates will be “Gradually and beware” It also looks to raising the inflation rate to its 2 % goal.

She said that the pace of price cuts may be subject to change, however, if the customs tariff in the United States reduces global demand and reach the United Kingdom’s growth more than expected.

There was a few good news on the growth front last week, with the data of the initial first total local products (GDP) showing 0.7 % expansion in Britain’s economic production during the first quarter.

Economists said that it is unlikely that impressive data will be repeated in the second quarter, noting that printing in the first quarter of the bumper was largely as a result of the activity that is presented before the potential American definitions and the rise in the taxes of local companies in April.

Julian Lavarg, the chief strategy of the market at Barclays Bank, said in the comments via e -mail on Tuesday that the latest inflation data “will submit a relatively noisy report at a time when the Bank of England is trying impatiently to determine what to do then.”

“However, in addition to short -term abnormalities, we believe that the general trend of traveling in the UK is less. This must provide the central bank space for at least consider discounts in interest rates this year, which supports favorable economic conditions to move forward.”