In July, UK prices experienced a year-on-year increase of 3.8%, primarily attributed to a rise in airfares linked to the school summer holidays. This marks the highest inflation rate since January 2024, exceeding the Bank of England’s target of 2%. The Office for National Statistics (ONS) noted that additional factors contributing to the price rise included increased costs for dining out, along with food and non-alcoholic beverages.
The Bank of England has projected that inflation may peak at 4% in September. According to ONS Chief Economist Grant Fitzner, the surge in airfares was the most significant for July since 2001 and was likely influenced by the timing of this year’s school holidays, which coincided with the ONS’s data collection period. In terms of food and beverages, costs rose by 4.9% in the year to July, up from 4.5% in June, with notable increases in the prices of coffee, fresh orange juice, meat, and chocolate.
Chancellor Rachel Reeves responded to the findings by suggesting that efforts are still needed to alleviate the cost of living for citizens. She acknowledged that while measures have been implemented to stabilize public finances and that the current inflation is far from the double-digit levels experienced under the previous government, more actions are necessary to improve the financial situation for households. This context adds to the ongoing discussion about economic conditions in the UK.
Source: https://www.bbc.com/news/articles/c741wkngndqo?at_medium=RSS&at_campaign=rss