Air fares and food prices push up UK inflation in July

Prices in the UK increased by 3.8% until July, and mainly continued with air fees and a leap in food price.

This means that inflation has been at its highest level since January 2024 and is still far above the 2%target of the Bank of the UK.

According to the National Statistics Office (OK), it helped to increase the prices of food and non -alcoholic beverages as well as non -alcoholic beverages.

Beef, chocolate and confectionery, ready -made coffee and fresh orange juice saw some of the biggest price increases.

The last estimate of the bank expects inflation to the top of 4% in September.

The increase in inflation of July was slightly higher than most economists predicted, and it was compared to an increase of 3.6% until June.

Ones Chief Economist Grant Fitzner said that the 30.2% “heavy” increase in air wages between June and July was the biggest leap of that period since the start of the monthly data collection in 2001.

He said, “Probably because of the timing of school holidays this year.”

This year, the day of collection for ounce data coincided with the start of school holidays last year.

The cost of food and non -alcoholic beverages increased by 4.9% per year to July until June. Food and beverage inflation has increased in a row, and the prices since February 2024 has made the highest level.

Aj Bell Financial Analysis President Danni Hewson, “Weekly Travel to Local Supermarket […] Most of us give the greatest idea about our cost of living “.

“When the UK emphasizes the expected effect of farmers on food production in a dry summer, many households will be worried that the relaxation of these high prices will take an important time.”

Increased food and fuel prices “stretch” the finance of Michelle Birkenhead.

However, he says it is the key to managing the money for the budget and planning for social activities.

“Very expensive,” says Michelle. “It has increased a lot, it’s ridiculous. Two years ago it would cost us expensive, you’re looking at £ 100 per week, £ 150.”

Michelle’s living expenses are increasing, while the cost of car insurance is relieved to find out that the cost of falling, he said.

Policy makers at the UK Bank take into account inflation and other economic data when deciding what to do about interest rates.

At the beginning of this month, they reduced rates from 4.5%to 4%and reduced the rates to the lowest levels for more than two years.

Inflation is now expected to reach 4% in September, which normally will not cause more interest rate deductions.

However, the economy is also struggling to grow, and the labor market is uncertain, which will often encourage the rates to reduce rates to promote expenditures.

Bank of England Governor Andrew Bailey, BBC, the decision to reduce the rates of this month was “fine balanced” and future interest rates “obviously a little more uncertain”, he said.

“Interest rates are still on a road,” he said. “However, any future deduction in the future will have to be made gradually and carefully.”

Rachel Reeves, who reacted to the latest figures, said that the government “made decisions to balance public finances and is a longest way from double -digit inflation that we see under the previous government.”

However, “There is more to be done to alleviate the cost of living,” he added.

Shadow Chancellor Mel Stide, inflation news “deeply for families,” he said.

“The Labor Party’s jobs increase tax and borrowing elections increase costs and stop inflation – make daily foundations more expensive.”