Air fares and food prices push up inflation to 3.8% in July

"hefty"

"likely due to the timing of this year's school holidays"

"weekly trip to the local supermarket... gives most of us the greatest insight into our cost of living"

"With UK farmers highlighting the expected impact of a dry summer on food production, many households will be worried that it's going to take a considerable amount of time before these higher prices unwind."

UK consumer prices rose 3.8% in the year to July, driven primarily by sharp increases in air fares and food items. The rate is the highest since January 2024 and remains well above the Bank of England's 2% target. Air fares jumped 30.2% between June and July, the largest monthly rise on record, likely linked to the timing of school holidays. Food and non-alcoholic beverages inflation was 4.9% year-on-year, the fourth consecutive monthly increase, with notable rises in beef, chocolate, confectionery, instant coffee and fresh orange juice. Petrol and diesel prices also increased compared with a year earlier, and the Bank of England expects inflation to peak around 4% in September, while dry summer conditions may prolong higher food prices.

Read at www.bbc.com