UK inflation rises by more than expected to 3.8% amid higher food prices

<p>Fuel and air fares also pushed up annual July rate, making interest rate cuts less likely this year</p><ul><li><p><a href="https://www.theguardian.com/money/2025/aug/20/rail-fares-in-england-rise-next-year">Rail fares in England expected to rise by 5.8% next year</a></p></li><li><p><a href="https://www.theguardian.com/business/live/2025/aug/20/uk-inflation-data-expected-show--rise-higher-food-energy-prices-eurozone-ukraine-oasis-business-live">Business live – latest updates</a></p></li></ul><p>UK inflation rose again last month to a higher-than-expected 3.8% amid higher food prices and travel costs, adding to fears that the Bank of England will delay further interest rate cuts.</p><p>Figures showed the annual rate as measured by the consumer prices index climbed from <a href="https://www.theguardian.com/business/2025/jul/16/uk-inflation-labour-economic-scrutiny">June’s 3.6% reading</a>, sitting above the central bank’s 2% target for the 10th consecutive month.</p> <a href="https://www.theguardian.com/business/2025/aug/20/inflation-rises-july-pause-interest-rate-cuts">Continue reading...</a>