LONDON, Aug. 20 (Xinhua) -- Britain's annual consumer price inflation (CPI) rose to 3.8 percent in July, the highest since January 2024, when it was 4 percent, the Office for National Statistics (ONS) said Wednesday.
The rate, up from 3.6 percent in June, was driven mainly by higher air fares, food and non-alcoholic beverages, and increased costs for hotels and restaurants.
On a monthly basis, prices edged up 0.1 percent in July, compared with a 0.2 percent fall a year earlier.
"The inflation warning lights continue to flash, with July's rate being slightly higher than most analysts had forecast," said Stuart Morrison, research manager at the British Chambers of Commerce (BCC). He added there is little sign inflation will approach the Bank of England's 2 percent target soon.
A BCC survey showed that inflation remains a major concern for more than half of Britain's small and medium-sized firms. Morrison noted that national insurance, wage growth and tariffs are all adding to pressures, while persistent inflation may limit the Bank of England's ability to cut interest rates further.
The ONS also reported that Britain's July CPI was well above preliminary estimates for France and Germany, at about 1 percent and 2 percent respectively.
According to Julian Jessop, economics fellow at the Institute of Economic Affairs, Britain's inflation continues to diverge from the euro area, where it has stabilized at around 2 percent. He cited government-set prices such as domestic energy bills and the national minimum wage, the impact of higher employer taxes, and elevated housing costs as key factors behind the gap. Enditem
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