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UK inflation rises more than expected to 3.8%

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UK inflation rises to 3.8%, driven by high accommodation and travel costs

The Independent

Inflation live: UK rate rises to 19-month high due to food prices and air fares, ONS says

UK inflation jumps to 3.8% hitting 19-month high after surge in food, petrol and travel prices

The Guardian

UK inflation rises by more than expected to 3.8% amid higher food prices

Daily Mail

UK inflation jumps to 3.8% as the cost-of-living for Britons goes up again - nearly DOUBLE Bank of England's target

Express.co.uk

Reeves handed brutal warning over disastrous new inflation figures

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BBC News

UK inflation rises by more than expected to 3.8%, largely driven by air fares - live updates

The Telegraph

UK inflation jumps in wake of Reeves tax raid

Consumer Prices Index including owner occupiers' housing costs (CPIH)

Bank of England

Monetary Policy Report - August 2025

Ben Riley-Smith

Goldman Sachs

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Robert Colvile

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Metaculus

"Today's #GDP growth figures are still a long way from @Keir_Starmer's target of 2.5% and it is far from clear that we are heading in the right direction."

"Labour are promising to be the fastest-growing country in the G7. And our growth forecast is 2% or less every single year of this parliament? Yeah, good luck with that."

"The economy is expected to grow by just over 1 per cent this year, rising to 2 per cent in 2025."

Research shows that "deep alignment with the EU on goods and services will deliver 2.2% economic growth to the UK."

"Closer ties with the EU could deliver growth of up to 2.2%. Clawing back up to half the damage caused by Brexit."

Will the UK Economy Grow By 2% GDP In a Year Under Labour?

Newly released data from the Office for National Statistics (ONS) on Wednesday has revealed that U.K. inflation rose faster than expected in July to its highest level since January 2024, when it reached 4%.

Newly released data from the Office for National Statistics (ONS) on Wednesday has revealed that U.K. inflation rose faster than expected in July to its highest level since January 2024, when it reached 4%.

In the 12 months to July 2025, the Consumer Price Index (CPI) rose by 3.8%, up from 3.6% in the 12 months to June, and one percentage point higher than economists and the financial markets had previously forecast.

In the 12 months to July 2025, the Consumer Price Index (CPI) rose by 3.8%, up from 3.6% in the 12 months to June, and one percentage point higher than economists and the financial markets had previously forecast.

The Consumer Prices Index including owner occupiers' housing costs (CPIH), meanwhile, which the ONS describes as its "most comprehensive measure of inflation," rose by 4.2% in the 12 months to July from 4.1% in the 12 months to June.

The Consumer Prices Index including owner occupiers' housing costs (CPIH), meanwhile, which the ONS describes as its "most comprehensive measure of inflation," rose by 4.2% in the 12 months to July from 4.1% in the 12 months to June.

The spike in inflation was primarily driven by transport costs, which rose by 3.2% in July compared with 1.7% in June. This rise was largely due to a 30.2% jump in airfares over the period, alongside fuel increases of 2 pence per litre for petrol and 2.9 pence for diesel.

The spike in inflation was primarily driven by transport costs, which rose by 3.2% in July compared with 1.7% in June. This rise was largely due to a 30.2% jump in airfares over the period, alongside fuel increases of 2 pence per litre for petrol and 2.9 pence for diesel.

Elsewhere, the ONS reported that 12-month food and drink inflation rose for the fourth consecutive month from 4.5% in June to 4.9% in July, while restaurant and hotel prices rose by 3.4% compared to 2.6%. Household services inflation, however, fell from 6.7% to 6.2%.

Elsewhere, the ONS reported that 12-month food and drink inflation rose for the fourth consecutive month from 4.5% in June to 4.9% in July, while restaurant and hotel prices rose by 3.4% compared to 2.6%. Household services inflation, however, fell from 6.7% to 6.2%.

The figures follow the Bank of England's 0.25 basis point cut to interest rates in early August, which reduced the bank rate to 4%. The central bank currently predicts that inflation will continue to rise and peak at approximately 4% in September before returning to the 2% target.

The figures follow the Bank of England's 0.25 basis point cut to interest rates in early August, which reduced the bank rate to 4%. The central bank currently predicts that inflation will continue to rise and peak at approximately 4% in September before returning to the 2% target.

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Air fares increased by 30.2% between June and July, representing the largest July rise since monthly data collection began in 2001, primarily due to the timing of school summer holidays affecting travel demand patterns.</span

Air fares increased by 30.2% between June and July, representing the largest July rise since monthly data collection began in 2001, primarily due to the timing of school summer holidays affecting travel demand patterns.

Food and drink inflation climbed to 4.9% in July from 4.5% in June, marking the fourth consecutive monthly increase and the highest level since February 2024, with coffee, meat and chocolate seeing significant price rises.</span

Food and drink inflation climbed to 4.9% in July from 4.5% in June, marking the fourth consecutive monthly increase and the highest level since February 2024, with coffee, meat and chocolate seeing significant price rises.

Petrol prices rose by 2 pence per litre and diesel by 2.9 pence per litre between June and July, compared to price drops during the same period last year, contributing to overall transport cost increases.</span

Petrol prices rose by 2 pence per litre and diesel by 2.9 pence per litre between June and July, compared to price drops during the same period last year, contributing to overall transport cost increases.

The Bank of England expects inflation to peak at approximately 4% in September before declining, with financial markets not fully pricing in another interest rate cut until spring 2026 following this data.</span

The Bank of England expects inflation to peak at approximately 4% in September before declining, with financial markets not fully pricing in another interest rate cut until spring 2026 following this data.

Chancellor Rachel Reeves acknowledged there is "more to do to ease the cost of living" while defending government measures including minimum wage increases, extended bus fare caps, and expanded free school meals programs.</span

Chancellor Rachel Reeves acknowledged there is "more to do to ease the cost of living" while defending government measures including minimum wage increases, extended bus fare caps, and expanded free school meals programs.

The government has stabilized public finances after inheriting economic chaos, with inflation remaining far below the previous administration's double-digit peaks of 11.1%. Current price increases stem largely from temporary factors like holiday travel demand and global food supply issues beyond government control. Labour's cost-of-living measures including wage increases and expanded support programs demonstrate commitment to helping families.

The government has stabilized public finances after inheriting economic chaos, with inflation remaining far below the previous administration's double-digit peaks of 11.1%. Current price increases stem largely from temporary factors like holiday travel demand and global food supply issues beyond government control. Labour's cost-of-living measures including wage increases and expanded support programs demonstrate commitment to helping families.

UK Inflation Hits 19-Month High at 3.8% in July

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Labour's reckless policies are the root cause of this spike in inflation, with job taxes and rising borrowing forcing businesses to raise prices. Reeves has managed to inherit a manageable 2% inflation rate and has nearly doubled it through misguided fiscal decisions. The result is further financial pain for British families who are already bracing for further tax rises in the autumn budget.

Labour's reckless policies are the root cause of this spike in inflation, with job taxes and rising borrowing forcing businesses to raise prices. Reeves has managed to inherit a manageable 2% inflation rate and has nearly doubled it through misguided fiscal decisions. The result is further financial pain for British families who are already bracing for further tax rises in the autumn budget.

Mel Stride

This Labour government has taken the hard decisions to stabilize the public finances after inheriting the economic chaos left behind by the Tories. Inflation is currently far below the previous government's double-digit rate, but more is needed to ease the cost-of-living, which is why the government will go further and faster with its Plan for Change to help working people.

This Labour government has taken the hard decisions to stabilize the public finances after inheriting the economic chaos left behind by the Tories. Inflation is currently far below the previous government's double-digit rate, but more is needed to ease the cost-of-living, which is why the government will go further and faster with its Plan for Change to help working people.

UK Inflation Hits 19-Month High at 3.8% in July

UK Inflation Hits 19-Month High at 3.8% in July

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UK Inflation Hits 19-Month High at 3.8% in July

UK Inflation Hits 19-Month High at 3.8% in July

The Spin

The Controversies

Graham

Colvile

Responsibility

Commission

Smith

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