In April, inflation in the UK arises on hot as expected 3.5%

The UK’s annual inflation in April reached 3.5%, which are received above the expectations of analysts, according to the National Statistics Office (ONS) on Wednesday.

Economists interviewed by Reuters expected the consumer price index to reach 3.3% in twelve months by April.

The last release of data is against the recent inflation tendency, and the cost of the cost increases to 2.8% in February and 2.6% in March.

The main inflation, which eliminates more volatile energy, food, alcoholic and tobacco prices, increased by 3.8% a year to April, which is 3.4% over the twelve months before March.

The greatest increase in the contribution to the monthly change of inflation was the result of housing and household services, transportation, recreation and culture. On the other hand, the spectrum, the largest – partly shifted – contributed down from clothing and shoes, In the press -release said ons.

Economists expected growth, which attributed it to a large extent with increasing energy-related price, which can be charged with energy suppliers-also a number of disposable adjustments, including the growth of business taxes, introduced in April, Easter holidays and recent good weather.

Recent data “will make a relatively noisy report at a time when the Bank of England is looking forward to understanding what to do next,” Julien Lafarg said on Tuesday, Barclays Private Bank chief strategist.

“However, beyond short-term distortions, we believe that the general direction of UK inflation below. This should provide the Central Bank to consider the possibility of at least a couple of interest rates this year, supporting favorable economic conditions,” he added.

British pound jumped approximately 0.4% to US dollar Immediately after the annual print in the UK was published in April.

Bank of England widely signal that it was waiting for temporary inflation growth up to 3.7% in the third quarter. According to the Committee on Monetary Policy, this is an increase in price growth, will come in part from the increase in energy prices and in some regulated prices, for example, in water accounts.

The predicted inflation increase was not enough to scare BOE from reducing its key interest rate to 4.25% at the last meeting in early May, however, given the constant uncertainty around the broad economic picture.

BOE at the time insisted that any further decrease in the interest rate would be “gradual and cautious” What looks like to reduce inflation speed to a 2%target. The rate of reducing rates can be changed, however, if the US trade tariffs reduce global demand and achieve the UK growth more than expected.

Last week, a rare news appeared on the UK data front, in which the data of the previous quarterly gross domestic product (GDP) show an increase of 0.7% in the first quarter.

Economists point out that impressive data is unlikely to be repeated in the second quarter, noting that the printing of the first quarter of the bumper was largely the result of the activity, ahead of future tariffs in the United States and taxes on domestic business in April.