Inflation surprise suggests outlook could be gloomier than we thought

The sun may have shone, but April was dubbed "awful" for a reason. Higher energy bills were followed by the biggest rise in water bills for over 35 years. Add in the continued rises in prices of food and services, a spike in airfares, and you get not only the highest inflation in a year but a situation where prices are rising faster than in France or Germany.The good news is that, for more workers, pay rises are…