UK inflation hits 3.8% in July on air fare and food price rises
UK inflation accelerated to 3.8% in July, the fastest pace since January, driven by higher air fares and rising food and dining costs.
Air Fare Spike Boosts Inflation
UK consumer prices rose by 3.8% year-on-year in July, the fastest increase since January 2024. A 30.2% jump in air fares from June to July, the largest since monthly records began in 2001, was driven by the timing of this year’s school holidays, according to the Office for National Statistics (ONS).
Rising Food and Drink Prices
Food and non-alcoholic beverage costs climbed 4.9% year-on-year in July, up from 4.5% in June and marking the fourth consecutive month of rising food inflation. Beef, chocolate, confectionery, instant coffee and fresh orange juice saw some of the largest price increases.
Monetary Policy Outlook
The Bank of England cut its base rate to 4% earlier this month, its lowest level in over two years. Policymakers expect inflation to peak at around 4% in September, complicating decisions on further rate cuts amid sluggish growth and an uncertain jobs market.
Rising holiday travel costs and higher food prices have pushed UK inflation to its fastest pace in over six months.
This topic was reported by BBC News.
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