UK inflation has unexpectedly jumped to 3.5% in April, driven by a significant rise in household bills, energy costs, and other essential expenses. This surge marks the highest inflation rate in over a year, prompting caution from the Bank of England and affecting market expectations regarding potential interest rate cuts. Traders have reacted by paring bets on rate reductions, and the GBP has climbed following the inflation announcement. The spike in inflation has raised concerns for the government, which has been promising to alleviate household financial pressures amidst rising costs.