Inflation surges to 4.5%

RPI inflation hit its highest level for over a year in April at 4.5%, up sharply from 3.2% the month before. Higher utility bills and tax rises were the driving force behind the rise.

Pay deals reported to LRD’s Payline averaged 3.8% in the three months to April, meaning they were falling behind inflation again. Deals were beating RPI inflation for months until January 2025.