Inflation jumps to 3.5% in April

Inflation increased to 3.5% in April, according to the latest figures for the Office for National Statistics (ONS), which it blamed on a “significant increase” in household bills.

The 12-month inflation rate for housing and household services was 7.0% in April 2025, up from 5.1% in March. On a monthly basis, prices rose by 1.8% in April 2025, compared with a fall of 0.1% a year ago.

The rise in the annual rate reflected large upward effects from gas and electricity, which resulted from the raising of the Office of Gas and Electricity Markets (Ofgem) energy price cap in April 2025.

Prices of water and sewerage also rose by 26.1% in the month to April 2025, compared with a rise of 8.1% a year ago. This marked the largest price increase since at least February 1988.

The price of transport also was a main contributor to the rise in April. During the month, prices in the transport division rose by 3.3% in the 12 months to April 2025, up from 1.2% in the 12 months to March.

Overall prices in the recreation and culture division also rose by 3.1% in the 12 months to April 2025, up from 2.4% in the 12 months to March. On a monthly basis, prices rose by 1.2% in April 2025, compared with a rise of 0.5% a year before.

A major reason for the rise in the annual rate was because of higher inflation for foreign holidays, as the period fell within the Easter holidays for schoolchildren when prices are usually higher.

The overall increase in the inflation rate was partially offset by a downward effect from clothing and footwear. Prices fell by 0.4% in the 12 months to April 2025, compared with a rise of 1.1% in the 12 months to March (Figure 4). On a monthly basis, prices fell by 1.1% in April 2025, compared with a rise of 0.4% a year ago.

The largest downward effects came from garments for women, garments for infants, and footwear for women, as shops held holiday sales to celebrate the Easter period.

ONS Acting Director General Grant Fitzner said: “Significant increases in household bills caused inflation to climb steeply. Gas and electricity bills rose this month compared with sharp falls at the same time last year due to changes to the Ofgem energy price cap. Water and sewerage bills also rose strongly this year as did vehicle excise duty, which all pushed the headline rate up to its highest level since the beginning of last year.

“This was partially offset by falling prices for motor fuels and clothing, driven by heavy discounting for children’s garments and women’s footwear.”