Prices in the UK increased by 3.8% in the year in July, mainly inspired by the school’s summer holidays jumping into the price of air fare.
This means that inflation is at its highest level for 18 months and is still above the target of 2%of the Bank of England.
Increase in the cost of eating out, as well as food and non-or-ordeal beverages, generally, helped to increase prices.
The bank’s latest forecast is expected to reach 4% of inflation in September.
ONS chief economist Grant Fitzner stated that the “heavy” growth in aerial fare “the biggest growth in July 2001 to change from quarterly to aerial fare”. He said that the jump “is likely to be due to the time of this year’s school holidays”.
He said, “The price of petrol and diesel also increased in this month, compared to a drop last year. Food price inflation continues to rise, such as coffee, the biggest growth with items such as coffee, fresh orange juice, meat and chocolate is seen,” he said.
