21-05-2025
What does the latest inflation data mean for interest rates?
The latest set of inflation figures may be enough to eradicate the deep-seated divisions among the nine members of the Bank of England's monetary policy committee (MPC).
Headline inflation climbed to its highest point since January 2024, up to 3.5 per cent from 2.6 per cent. The 0.9 percentage point increase between March and April was the largest month-on-month change since October 2022.
Household bills were the main culprit for the inflation surge, but the Office for National Statistics also said that airfares increased by 27.5 per cent, the second biggest monthly increase in April on record, because the statistics agency collected data over the Easter weekend when flight prices typically surge. Food inflation climbed to 3.4 per cent last month from 3 per cent
