Summary
Inflation in the UK increased to 3.8% in the year to July, mainly because of higher airfares during the school summer holidays. This rate of inflation is the highest in 18 months and is above the Bank of England's target of 2%. The cost of eating out, food, and drinks also contributed to the rise in prices.
Key Facts
- Inflation in the UK reached 3.8% in July.
- The increase in prices is mainly due to higher airfares.
- The rise in airfares happened during the school summer holidays.
- This inflation rate is the highest in the last 18 months.
- The Bank of England aims for a 2% inflation rate.
- Prices of eating out, food, and drinks also went up.
- The Bank of England expects inflation to reach 4% in September.
