UK Inflation Is Back Up. But So Is Consumer Spending. What’s Going On?

In the latest edition of Citrus Bites, Richard Harris takes a whistle-stop tour through the state of the UK economy. The numbers are more surprising than you might expect.

Despite a new spike in inflation (CPI rising to 3.5% in the 12 months to April), retail sales are climbing, not falling. Even with higher water bills, council tax increases, and employer national insurance contributions hitting in April, the UK consumer keeps spending.

Key Takeaways from This Episode:

  • Retail sales volumes rose 1.2% in April and are up 1.8% over three months.

  • Unemployment remains low at 4.5%

  • Average weekly earnings are still rising faster than inflation, growing at 5.6%

All of this presents a big question for the Bank of England, which has already cut the base rate twice in 2025. Most recently to 4.25% in May. With the next MPC meeting on 19th June, Richard explores whether stronger economic data could put future rate cuts on pause.

Watch the full episode now

This is a must-watch for anyone trying to make sense of the economic headlines. Delivered in just a few minutes, straight from our Sevenoaks office.

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