Flight and food prices push up inflation

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.

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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%.