Household bills drive inflation increase

21 May 2025

Inflation jumped to 3.5% in the year to April, up from 2.6% in March, according to the Office for National Statistics (ONS).

The ONS said the increase was explained by an unusual increase to energy bills during April and steeper rises for other staples such as council tax and water.

Households on the energy price cap saw a rare spring rise of 6.4% in April while council tax bills were widely up by 5%.

Stuart Morrison, Research Manager at the British Chambers of Commerce (BCC), said: 'Businesses are facing a perfect storm of cost-pressures which is fuelling inflation alongside rising household bills. While April's jump was expected, the scale, to 3.5%, is concerning.

'With the National Insurance (NI) hike, minimum wage rise and global tariffs, our research shows 55% of businesses are expecting to put up prices in the coming months.

'Firms urgently need to see a clear tax roadmap identifying when the burdens of NI and business rates will ease. Upcoming strategies on industry, trade and infrastructure must live up to business expectations and help drive investment.

'On the global front, Monday's UK-EU reset deal was good news for business. Coupled with recent trade announcements with the US and India, it provides a pathway to growth.

'But with inflation clouds gathering, the government must accelerate efforts to help business, not ease off.'