Sharp rise in airfares push UK inflation higher in July
Higher food and flight ticket prices raised the UK inflation above expectations in July, and the official figures have caught the market expectations that the Bank of England would reduce interest rates in 2025.
National Statistics Office, consumer price inflation is 3.8 percent in July and increased from 3.6 percent in June, he said.
One of the contributors started in 2001 since the collection of monthly data.
Most economists envisaged a more modest increase in inflation.
Inflation has been the highest rate since January 2024, and with the fact that Bank of England has doubled its two -percent targets, the expectations of another ratio cut in 2025 are decreasing.
Suren, ICAEW Economy Director of the Institute of Certified Public Advisors, said, “The outbreak of the month of July is probably eliminating the hope of decreasing the September interest rate, strengthening the underlying inflationist pressures and questioning that policy makers cannot relax again this year.”
The Bank decreased its main interest rate to four percent in August, four percent, and the fifth decrease in a year, when policy makers began to reduce borrowing costs by 5.25 percent from the highest level of 16 years.
The basic rate of the UK Bank is a criterion for mortgage, consumer and business loans since March 2023.
The last increase is another blow to the workers’ government that came to power last July due to the cost of life that sees that inflation increased over 11 percent at a time.
Treasury Chief Rachel Reeves admitted that there was more to “facilitate the cost of living.
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