Annualised consumer price inflation (CPI) rose to 2.7% last month, up from 2.3% in March.

It means CPI is at its highest in over three years.

David Hollingworth, associate director at L&C Mortgages, said: “As the impact of a weaker pound feeds through to monthly costs for consumers, and as the Bank warned last week, it will be a challenging time for British households.

“The upside for those feeling the impact of higher inflation in their pocket, is that interest rates remain at rock bottom and mortgage rates are at or near the lowest on record. Borrowers should be making sure that they are taking advantage of these rates and keeping their mortgage costs to a minimum. All too many don’t review their mortgage and our recent research found that not only were 36% sat on a high standard variable rate, but more than half have never even tried to remortgage.

“In a period of uncertainty for consumers, they can at least use the very competitive mortgage rates on offer to cut costs and also put some certainty into their biggest single monthly outlay by fixing their rate. That should at least help deal with the inevitable squeeze on disposable income that higher inflation brings.”

Calum Bennie, Scottish Friendly’s savings spokesperson, added: “With inflation now at 2.7% but wage growth forecast to be 2.0% for the year as a whole, even Diane Abbott can work out that household finances are set to be squeezed for a considerable time to come. 

“Although putting money aside for the future is difficult during periods of constraint, it’s something we should strive to do in case the Bank of England does decide to raise interest rates in future to combat inflation.”