Annual increase to energy costs pushes inflation upwards
THE rate of inflation has risen dramatically once again as the CPIH number has reached its highest overall figure since 2025 started.
According to the latest data from the Office for National Statistics (ONS), the consumer price index including housing costs (CPIH) figure stood at 4.1% for the year to the end of April.
This marks a considerable upwards rise month-to-month for the figure as it sat at 3.4% at the end of March.
This leap in the rate has, primarily, been driven by the upwards effects from gas and electricity prices as a result of the Office of Gas and Electricity Markets’ (Ofgem) increase of the energy price cap in April 2025.
This year, Ofgem estimated that an average household paying direct debit for dual fuel would now pay an average of £1,849 in a year – a rise of £111 over the course of the past year.
Transport also added to this increase in inflation due to a rise in Vehicle Excise Duty, in which both old and new electric cars became eligible to pay in April as well.
However, increases for the transport sector were counteracted by a downward effect from motor fuels. The average price of petrol feel by 3 pence per litre (ppl) to stand at 134.5ppl between the end of March and the end of April 2025, the ONS said, and diesel fell by 3.1ppl to sit at 141.7ppl.
Food and non-alcoholic beverages costs also saw a slight increase over the course of April to sit at 3.4%, up from 3% at the end of March. This was down to an increase in costs for meat, mineral water, bread & cereals and sugar & jam. Downward effects on this number were contributed by vegetables and milk, cheese and eggs.
Kris Hamer, director of insight at the British Retail Consortium, said: “Headline inflation accelerated as additional costs from rising National Living Wage and Employers’ National Insurance costs filtered through to prices faced by consumers, as well as costs of utilities (energy, water and broadband).
“Rising inflation was inevitable following the wave of additional costs hitting employers, and particularly retailers who employ over 3million people across the country.
“For months, retailers have been warning that rising costs would lead to higher prices. To mitigate this, the government must now find ways to help reduce business costs and regulatory burden.
“It is imperative that its Employment Rights Bill targets unscrupulous employers and avoids burdening responsible businesses with additional costs which could put retail job numbers into reverse.”
Even in the face of these rising costs, Scottish consumers weren’t deterred to celebrate the Easter season. According to Kantar’s Scottish Market Landscape data, take-home grocery sales across the country grew by 7.9% in the four weeks to 20 April.
This growth occurred against the backdrop of rising grocery inflation, which Kantar said edged up slightly to 3.8% over the same period.
Overall, Easter Egg sales generated £17.6million in value and were purchased by 41.5% of Scottish households.
Lesley Ann Gray, strategic insight director at Kantar, said: “Easter novelties were bought by 20.5% of household during the four week period, contributing £3.4million in value.
“However, volumes remained flat year-on-year due to a 13.1% price increase. Hot cross buns remained a seasonal favourite, purchased by 40.3% of households, generating £5.3million – an 8.4% increase in value, again inflation-led, as pack sales declined by 8.1%.”
