The start of the new financial year has brought an immediate uptick in inflation, with prices rising 4.1% last month

Inflation is back with a vengeance. Chancellor Rachel Reeves assumed businesses would simply “have to absorb some of [the NIC increases in her October budget] through [reduced] profit and [lower] wage increases”. But shoppers will be absorbing the extra costs too. The start of the new financial year has brought an immediate uptick in inflation, with prices rising 4.1% last month [Kantar 4 w/e 18 May] to their highest levels since February 2024.