Kevin Brown, savings specialist, comments on today’s inflation spike of nearly 1%

While this surge is a nasty shock, an increase wasn’t unexpected

"Today’s inflation spike is a hard blow for millions of UK households who dared to believe the worst was behind them. After years of punishing price rises, a near 1 percentage point leap to 3.5% is the last thing families need — especially when every corner of the household budget already feels stretched.

"But while this surge is a nasty shock, it wasn’t entirely out of the blue. April is when a raft of providers – from water and energy firms to broadband and mobile networks – hit households with their annual price hikes. Ofgem’s energy price cap change added more fuel to the fire.

"That won’t be much consolation for those still reeling from three years of inflationary pain. However, the silver lining is that this spike should prove short-lived. Inflation is expected to climb a little further into the summer before easing back in the final months of the year.
"It also helps that homes typically use less energy at this time of year, particularly with the recent spell of good weather.

"Crucially, we don't think this alters anything when it comes to interest rates. We still expect the Monetary Policy Committee to hold rates in June, before delivering two more cuts by year-end, or four in total for 2025.

"That will offer some much-needed relief – but first, households may have to grit their teeth through another few months of rising costs."