UK inflation has overshot growth expectations by increasing back up to 3.5% in the year to April, the Office for National Statistics (ONS) has revealed.

Consumer price index (CPI) inflation was estimated to rise to 3.3% in this period, up from 2.6% in March.

However, the ONS stated that increasing household bills, including water and energy, was the biggest contributor to this latest rise in price increases, with downward contributions coming from clothing and footwear.

CPI inflation also increased by 1.2% month-on-month in April, after a monthly increase of 0.3% in March.

Personal finance analyst at Bestinvest, Alice Haine, said that the latest update is a "blow" to the Chancellor’s quest to boost economic growth, as well as to households across the UK.

She stated: "‘Awful April’s’ barrage of bill hikes saw consumers saddled with rises to energy, water, mobile and broadband bills along with higher council tax, car tax and stamp duty costs. Food inflation also rose to 3.4% from 3% in March as supermarkets came under pressure from rising costs.

"An uptick in the headline inflation figure is likely to be a source of concern for households who may be fearing a return to the dark days of rapid price rises that devastated household budgets during the cost-of-living crisis. Higher inflation diminishes spending power and erodes savings, making it difficult for people to maintain the living standards they have become accustomed to.

"Inflation at 3.5% may be a huge improvement on the peak of 11.1% at the height of the great financial squeeze in October 2022, but that won’t offer much comfort for households still weighed down by higher living costs and an ever-rising tax burden."

Chief sales and marketing officer at Phoebus, Richard Pike, also said that the latest figures add a "sense of uncertainty" for the housing and mortgage market, with the expectation that the Bank of England will now hold the base rate for longer.

He concluded: "A longer wait for rate cuts means continued pressure on affordability, both for prospective buyers and those coming to the end of fixed deals. While lenders have shown a willingness to compete, particularly in the remortgage space, volume recovery may be more gradual."

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