UK Inflation Remains High at 3.4% in April

The UK's Consumer Prices Index (CPI) rose by 3.5% in the 12 months to April 2025, but a car tax data miscalculation led to an overstatement. According to the Office for National Statistics the actual rate should have been 3.4%. CPI increased by 1.2% in April 2025, compared with a rise of 0.3% in April 2024. The Consumer Prices Index including owner occupiers' housing costs (CPIH) rose by 4.1% in the 12 months to April 2025, up from 3.4% in March. Housing and household services, rose by 7.0%, transport prices increased by 3.3% due to higher Vehicle Excise Duty rates and a 27.5% rise in airfare prices, and recreation and culture prices rose 3.1% due to higher inflation for foreign holidays. Core CPI which excludes energy, food, alcohol and tobacco climbed to 3.8%, and services inflation surged to 5.4%.