UK inflation: Air fares and food prices push rate up to 3.8% in July

Prices in the UK rose by 3.8% in the year to July, driven mainly by a jump in the price of air fares and food.

That means inflation is at its highest level since January 2024 and still far above the Bank of England's target of 2%, according to the Office for National Statistics (ONS) data.

While the timing of school holidays likely caused the jump in air fares, higher food prices were driven by increases to the cost of beef, chocolate and confectionery, instant coffee, and fresh orange juice.

The slightly higher-than-expected increase to inflation strengthens economists' expectations that the Bank of England will slow the pace of interest rate cuts.