Today's inflation announcement of 8.7% has brought concerns that interest rates will rise again in June.
This morning the Office of National Statistics (ONS) announced that inflation had dropped from 10.1% to 8.7% in the year leading to April.
This figure is higher than what experts had predicted as many believed the inflation rate would drop as low as 8.2%.
Although it may sound like good news - financial experts have come forward to warn of the effect this month's figure may have on next month's interest rate announcement.
ITV political editor Robert Peston responded to the April rate on Twitter saying that they were "not great inflation figures" and that interest rates were likely to rise again as this is what the Bank of England looks at in making its decision.
Inflation and interest rates tend to move in the same direction because interest rates are the primary tool used by the Bank of England to manage inflation.
This means if inflation is high - interest rates will likely follow suit.
By raising interest rates, the theory is that people spend less, demand goes down and then this should mean inflation drops.
Currently, the Bank of England's base interest rate sits at 4.5% - it has been upped eleven times in a row since December 2021.
Rob Clarry, investment strategist at wealth manager Evelyn Partners says that interest rates could rise to as high as 5.5% before the end of the year.
This is due to the "core" level of inflation - which the central bank has recently expressed concerns about.
The core rate of inflation rose to 6.8% last month, the highest since 1992 and up from 6.2% in March.
Rob said: "As we outlined last week, the Bank of England’s decision on whether to continue its hiking cycle will depend on the incoming data. The latest CPI data increases the probability of another increase at the June meeting.
"This was another disappointing inflation print for the Bank of England. With core inflation at a thirty-year high, we now expect another hike at the June MPC meeting."
The next Bank of England interest rate announcement will be on Thursday, June 22.
