Inflation in the United Kingdom climbed to 3.8% in the month of July, its highest level since January 2024, according to new figures released by the Office for National Statistics (ONS).
The figure came in slightly above expectations, with the Bank of England projecting inflation to peak at 4% in September before easing back towards its 2% target.
The rise was largely driven by a 30.2% jump in air fares, fuelled by higher prices during the school holidays.
Food prices also surged, with inflation in the sector reaching 4.9% as the cost of items such as beef, instant coffee, and orange juice climbed further.
Over the past five years to July, the price of food and non-alcoholic drinks has increased by around 37%.
BBC’s Colletta Smith noted that households on lower incomes would feel the strain more acutely, while deputy economics editor Dharshini David observed that rising food prices highlight concerns over how quickly inflation will return to 2%.
Reacting to the data, Chancellor Rachel Reeves said there was “more to do to ease the cost of living,” while shadow chancellor Mel Stride described the figures as “deeply worrying for families.”
On the ground, businesses and producers warned of tougher times ahead. A chocolate shop owner in Manchester told the BBC that firms are being forced to find “innovative” ways to cut costs, while a farmer in Cheshire cautioned that a poor harvest could push up the price of eggs and meat.
