Air Fares and Food Prices Push UK Inflation to 3.8%
Inflation in the UK has jumped again, and it’s now sitting at 3.8% for July, which is a little higher than what most experts had expected. This is actually the highest level we’ve seen since January 2024, and the main culprit, according to the Office for National Statistics, is air fares. Prices for flights jumped by more than 30% between June and July, the sharpest rise for this time of year since records began back in 2001. The reason is fairly simple—the data was collected right as the school summer holidays kicked off, and anyone who’s tried booking a family trip during that window will know just how quickly ticket prices shoot up.
But flights aren’t the only pressure point. Food prices have continued their steady climb, rising for the fourth month in a row. Over the past year, food and non-alcoholic drinks are up 4.9%, compared with 4.5% just a month earlier. Everyday staples like coffee, orange juice, meat, and chocolate are costing noticeably more, and households on tighter budgets are really feeling the squeeze. For many families, these are not costs that can simply be avoided, so the strain is magnified. Some small business owners, like restaurant operators and farmers, say they’ve cut back everywhere they can, but costs are still rising faster than they can adjust.
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Government officials are acknowledging the pressure. Chancellor Rachel Reeves has said that while progress has been made since the days of double-digit inflation, there’s still more work to do to ease the cost of living. Measures like raising the minimum wage and expanding free school meal programs have been highlighted, but critics argue that families are still being left to manage increasing bills with little relief in sight. Shadow Chancellor Mel Stride has even called the figures “deeply worrying for families.”
Economists are now watching closely to see what happens next. The Bank of England has predicted inflation could peak at 4% in September before easing off later in the year, but some analysts warn it could go even higher. And because inflation is proving stubborn, it may also mean the Bank holds off on cutting interest rates anytime soon, keeping borrowing costs elevated for households and businesses.
In short, while the numbers may not sound huge at first glance, that 3.8% figure translates into real struggles for families, travelers, and small businesses. From the price of a pint of milk to the cost of a summer holiday flight, inflation is squeezing wallets in ways that are hard to escape. Families are cutting back, businesses are making tough choices, and for many, every penny truly does count right now.
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