Air fares and food prices push up inflation to 3.8% in July
The UK's inflation rate reached 3.8% in July, exceeding expectations and marking the highest level since January 2024. The rise was primarily driven by increases in air fares and food prices. According to the Office for National Statistics (ONS), the Consumer Prices Index (CPI) rose from 3.7% in June, indicating that inflationary pressures are intensifying. The surge in air fares is attributed to the continued recovery in the travel industry, while the rise in food prices reflects the ongoing impact of global supply chain disruptions and the war in Ukraine. The Bank of England has been tasked with keeping inflation at around 2%, and the latest figures will add to the pressure on the central bank to raise interest rates further in an effort to cool the economy and bring inflation under control.
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