What’s fueling persistent inflation in the UK—and how does it hit everyday life? UK inflation accelerated to 3.8% in July—the highest since January 2024 and slightly above expectations, marking the fourth straight month of rising price pressures. Airfares set a new record for their biggest July jump (+30.2% year-on-year), largely due to the school holiday calendar. Meanwhile, food inflation ticked up to 4.9%, with essentials like coffee, beef, and chocolate leading the way (beef +24.3%, coffee +18%).
- UK inflation has now climbed 2.1 percentage points since the 2024 trough
- Core inflation is also sticky at 3.8%
- Food bank use nationwide is up 32% since 2021–22
The cost squeeze is felt acutely by lower-income Britons, whose weekly grocery bills have soared (families report £310 up to £350 over two years), while hospitality and fast food businesses cite falling visitor numbers. As the Bank of England targets a peak near 4% in September, both government and opposition are trading blame while rolling out competing cost-of-living measures.
