{"id":81172,"date":"2025-08-20T22:36:11","date_gmt":"2025-08-20T22:36:11","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/81172\/"},"modified":"2025-08-20T22:36:11","modified_gmt":"2025-08-20T22:36:11","slug":"uk-inflation-rises-by-more-than-expected-as-summer-travel-bumps-up-air-fares","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/81172\/","title":{"rendered":"UK inflation rises by more than expected as summer travel bumps up air fares"},"content":{"rendered":"

UK inflation rose by more than expected in July as demand for summer travel pushed up air fares and food prices continued to climb, according to official figures.<\/p>\n

Consumer Prices Index (CPI) inflation increased to 3.8% in July, from 3.6% in June, the Office for National Statistics (ONS) said.<\/p>\n

Most economists had been forecasting inflation to rise to 3.7%.<\/p>\n

It means the headline rate remained at the highest level since January 2024, when it hit 4%.<\/p>\n

The ONS said the school summer holidays helped bump up travel costs last month, which helped drive up inflation across the UK.<\/p>\n

Grant Fitzner, the ONS\u2019s chief economist, said: \u201cThe main driver was a hefty increase in air fares, the largest July rise since collection of air fares changed from quarterly to monthly in 2001.<\/p>\n

\u201cThis increase was likely due to the timing of this year\u2019s school holidays.<\/p>\n

\u201cThe price of petrol and diesel also increased this month, compared with a drop this time last year.<\/p>\n

\u201cFood price inflation continues to climb \u2013 with items such as coffee, fresh orange juice, meat and chocolate seeing the biggest rises.\u201d<\/p>\n

Inflation has jumped again \u2013 rising 3.8% in the year to July, the steepest increase since January.<\/p>\n

For households already stretched, that means everyday essentials are once more taking a bigger bite out of pay packets and the squeeze falls heaviest on lower-income families.<\/p>\n

Food prices are leading the charge, up 4.9% on last year.<\/p>\n

Shoppers are feeling it most in staples like beef, sugar, chocolate, instant coffee and fruit juice.<\/p>\n

Fuel costs are also up, with petrol and diesel almost 3p a litre more expensive than a year ago.<\/p>\n

That doesn\u2019t just hurt drivers \u2013 it filters through into transport costs for businesses, nudging up prices across the board.<\/p>\n

Yes, gas and electricity bills dipped slightly in July, but most households have seen those savings quickly cancelled out by rising costs elsewhere.<\/p>\n

A key target for Sir Kier Starmer\u2019s government was to offer relief on the cost of living, today\u2019s figures underline a stubborn reality: the pressure on working families isn\u2019t easing \u2013 it\u2019s mounting.<\/p>\n

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