UK inflation surged to 3.5% in April, surprising economists and intensifying concerns over the Bank of England’s strategy on interest rates. The rise follows months of falling inflation and comes amid steep household bill increases, particularly in energy and broadband costs. Huw Pill, the Bank’s chief economist, had warned just a day earlier that rate cuts were being implemented too quickly, describing the return to stability as 'stuttering'. Pill voted against this month’s rate cut, calling for a pause and slower reductions, while the Bank’s monetary policy committee remained split. Some members wanted a deeper cut, while others, including Pill, argued for restraint due to stubborn underlying inflation and continued wage growth. Traders now expect fewer rate cuts in 2025 than previously hoped, disappointing mortgage holders and borrowers. With over 2,000 UK companies going bust in April - the highest since last summer - concerns are growing over financial pressures on households and businesses. The debate now centres on whether the Bank can tame inflation without stalling economic recovery or deepening insolvency risks.