*Inflation hits 3.5%* Data from the Office for National Statistics shows that inflation rose to 3.5% in April. This was up from the 2.6% recorded in March and exceeds the 3.3% increase that had been forecast by economists. The Bank of England, which has an inflation target of 2%, has previously said it expects inflation to peak at 3.7% between July and September. The rise came amid increases in energy costs, while higher employer National Insurance contributions and a boost to the national minimum wage have put pressure on companies to raise prices. Monica George Michail, an economist at the National Institute of Economic and Social Research, said inflation could remain high for several months, meaning the Bank of England is likely to only cut interest rates one more time this year. The British Chambers of Commerce said that while April’s increase was expected, "the scale … is concerning." Suren Thiru, economics director at the ICAEW, said April's increase "highlights the brutal hit to household and business finances from April's multitude of eye-watering bill rises and tax hikes." Chancellor Rachel Reeves said she was "disappointed" with the figures.