UK inflation rises by more than expected as summer travel bumps up air fares

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.

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

Most economists had been forecasting inflation to rise to 3.7%.

It means the headline rate remained at the highest level since January 2024, when it hit 4%.

The ONS said the school summer holidays helped bump up travel costs last month, which helped drive up inflation across the UK.

Grant Fitzner, the ONS’s chief economist, said: “The 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.

“This increase was likely due to the timing of this year’s school holidays.

“The price of petrol and diesel also increased this month, compared with a drop this time last year.

“Food price inflation continues to climb – with items such as coffee, fresh orange juice, meat and chocolate seeing the biggest rises.”