UK inflation rose to its highest level since Margaret Thatcher was prime minister 40 years ago, adding to pressure for action from the government and central bank.
Consumer prices surged 9 percent in the year through April, the fastest rate since March 1982, the Office for National Statistics said Wednesday in a report that marked a bleak moment for living standards. Economists had expected a reading of 9.1 percent.
The leap from 7 percent in March came from an increase in energy prices, reflecting a surge in wholesale markets that drove a 54 percent in consumer bills in April. Fuel prices also contributed, reflecting higher oil prices after the war in Ukraine. Both petrol and diesel prices in April rose to a record.
The increase is more than double the pace of basic wage growth, squeezing consumer spending power.
The pain is set to intensify, with the Bank of England predicting double-digit inflation by October when energy bills are almost certain to jump again. There was evidence of more generalized inflation, with a 6.7 percent jump in food and non-alcoholic drink prices.
The cost of recreation and culture rose 5.9 percent, the largest increase since at least 2006, and restaurant and hotel prices were up 8 percent.
Part of that was due to value-added tax reverting to the normal rate after the pandemic. Furniture and household equipment rose 10.7 percent.
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