Last month, UK inflation unexpectedly surged to 3.5%, remaining higher than the Bank of England’s (BoE) target to keep inflation at 2%. The BoE expects inflation to continue steadily increasing throughout the next few months despite interest rates cuts – four times since August 2024, with the most recent on 8 May to 4.25%. The BoE also anticipates inflation will eventually stagnate between July and September. Inflation has jumped in accordance with pressure from increasing water, gas and electricity bills as well as April’s changes to Employer National Insurance contributions and increases to the National Minimum Wage. It increases from 2.6% in March. The Office for National Statistics (ONS) monitors price changes over the previous 12 months to calculate inflation and dubbed energy bills rise due to the Ofgem energy price cap. As a result of rising inflation, the BoE is now expected to hold on another cut in interest rates as the growth in prices continues.