Inflation rises to 3.8% in July.
UK inflation accelerated to 3.8% in July from 3.6% in June, according to the Office for National Statistics. Transport costs, notably higher air fares, were the most significant driver of the monthly increase.
https://x.com/i/birdwatch/t/1958046407987712172UK inflation rose to its highest level since January last year, driven by higher food and transport costs, following Chancellor Rachel Reeves’s recent tax measures.
The Office for National Statistics (ONS) reported that consumer prices increased at an annual rate of 3.8% in July, up from 3.6% in June and above forecasts of 3.7%.
Transport costs were the most significant contributor to the rise, while food inflation accelerated from 4.5% to 4.9%, its highest level since February 2024.
The figures come after the Chancellor’s April decision to raise National Insurance and the minimum wage, changes critics argue have added to cost pressures on businesses and households.
The unexpected jump complicates the outlook for the Bank of England as it weighs whether to cut interest rates further to support growth.
Reeves admits ‘more to do’ as inflation rises
Chancellor Rachel Reeves has acknowledged there is “more to do” to ease the cost of living after inflation rose to its highest level since January last year.
Reeves said the Government had taken “the decisions needed to stabilise the public finances” and stressed the UK was “a long way from the double-digit inflation we saw under the previous government.”
She pointed to measures including raising the minimum wage, extending the £3 bus fare cap, expanding free school meals to more than half a million children, and introducing free breakfast clubs nationwide.
“Through our Plan for Change, we’re going further and faster to put more money in people’s pockets,” the Chancellor said.
