“Back with a bang”: Inflation rises to 3.5%

The increase is a setback for the Chancellor, who was just last week basking in the glow of better-than-expected GDP figures. Reflecting on the latest numbers, she said: “I know the cost of living is still weighing down on working people.

“That’s why we have increased the minimum wage, frozen fuel duty, and begun rolling out free breakfast clubs in schools. But I’m determined we go further and faster to put more money in people’s pockets.”

The primary driver of the rise came from significant hikes in household bills, including the energy price cap and water bills–  which rose at their fastest rate since 1988 – as well as council tax. Increases in food prices and transport costs also contributed.

Hargreaves Lansdown’s head of personal finance, Sarah Coles, said: “Inflation is back with a bang: like an unwanted house guest, breaking down the door, emptying the fridge, and bleeding you dry. The spike in prices is the biggest we’ve seen since the cost-of-living crisis, and even larger than had been forecast.

“It demonstrates just how awful April was this year for our pockets. Unfortunately, there’s every sign this unwanted guest could end up sticking around for months.”

Monica George Michail, associate economist at the National Institute of Economic and Social Research, added: “Above-target inflation is likely to persist in the coming months.

“Businesses are experiencing cost pressures amidst the rise in the national minimum and living wage, employer national insurance contributions, and regulated price increases. Some of these costs will be passed down to consumers through higher prices.

“We therefore anticipate just one further interest rate cut this year by the Bank of England.”