In April 2025, the United Kingdom’s annual core inflation rate increased to 3.8%, up from 3.4% in March, surpassing market expectations of 3.6%. This rise represents the highest level since April of the previous year. Notably, the annual rate for goods within the Consumer Price Index (CPI) surged from 0.6% in March to 1.7%. Similarly, the CPI services rate saw an increase, climbing from 4.7% to 5.4%. On a monthly basis, core consumer prices experienced a significant rise of 1.4%, a marked acceleration from the 0.5% increase recorded in March, and exceeding anticipated projections of a 1.2% increase.
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