Bigger-than-expected inflation jump worsens Bank of England dilemma

Bank torn between calls to cut interest rates to boost growth and need to damp down price rises

• UK inflation jumps higher than expected to 3.5%
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For households across Britain, April was an awful month. Rising energy bills, broadband costs and the sharpest increase in water bills since privatisation - despite public anger over the quality of service offered - all added to the cost of living squeeze.

Economists had forecast a jump in inflation based on the flurry of annual bill increases. But at 3.5% - the highest rate in the G7 - the rise was bigger than the 3.3% rate predicted in the City, and will raise concerns at the Bank of England.