The headline rate of UK inflation jumped by more than expected to 3.5% in April, this morning's ONS report shows

UK inflation jumped more than forecast to its highest rate in more than a year as households were hit by a raft of price increases during what has become dubbed “awful April” in the British media.

The dip in the U.S. credit rating indicates that ratings agencies believe the government is at a higher risk of default on its debt. While the U.S. rating still remains relatively high, the decrease may make investors more hesitant to lend to the government, and demand higher compensation for lending in the form of higher interest rates.

Canada's annual inflation rate fell to 1.7% in April due to a drop in energy prices, but analysts said a rise in closely watched core measures would make life hard for the Bank of Canada as it ponders its next rate move.

The financial expert said: After last month’s barrage of price hikes - which added around £360 to the average household’s outgoings - this inflation spike is no surprise. Housing and household services were among the largest upward contributors to April’s inflation figures.

The U.K.'s annual rate of inflation jumped further above the Bank of England's target in April as businesses raised their prices in response to higher payroll taxes and increased utility charges, an expected move that will nonetheless reinforce the central bank's caution.

Canada's annual inflation rate in April fell to 1.7% from 2.3% in March as overall energy prices plunged 12.7% after the removal of a federal consumer carbon tax, Statistics Canada said on Tuesday.

The UK rate of inflation increased to 3.5% in April, its highest level since February last year, according to the latest figures from the Office for National Statistics (ONS). The increase, from 2.6% in March, was driven by sharp rises in energy and water bills last month.

Inflation has risen well above the Bank of England's 2 per cent target, and is expected to stay there for many months