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

 
Prices in the UK rose by 3.8% in the year to July, driven mainly by a jump in the price of air fares and food.
 
That means inflation is at its highest level since January 2024, and still far above the Bank of England's target of 2%.
 
While the timing of school holidays likely caused to the jump in air fares, higher food prices were driven by increases to the cost of beef, chocolate and confectionery, instant coffee and fresh orange juice. 
 
The slightly higher-than-expected increase to inflation strengthens economists' expectations that the Bank of England will slow the pace of interest rate cuts. 


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