Prices in the UK rose by 3.8% in the year to July taking inflation to its highest level since January 2024 and well above the Bank of England’s target of 2%, according to figures from the Office for National Statistics.
A jump in the price of air fares coinciding with the school summer holidays, rising eating out costs and increased food and drink prices have all pushed up the figure. 
Stuart Morrison, Research Manager at the British Chambers of Commerce, said: “The inflation warning lights continue to flash, with July’s rate being slightly higher than most analysts had forecast. Prices are now rising at the fastest rate since the start of 2024, with little sign that inflation will be near the Bank’s target of 2% anytime soon.
“Our surveys show inflation remains a real concern for over half of SMEs. Businesses tell us national insurance, wage growth and tariffs are all bubbling away in a cauldron of price pressures.
“ While many firms are desperate to see further interest rate cuts, there’s now growing concern that persistent inflation will limit the scope for further reductions.
“It’s vital that policymakers ease the cost pressures on business. Our message to the Chancellor is clear – no new tax rises on business in the Budget. Firms can’t drive forward economic growth if they are continuing to face cost pressures from several directions.”
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