The latest figures from the Office for National Statistics (ONS) show that UK inflation rose to 3.8% in the year to July , the highest level since January 2024. The increase was slightly above expectations and was driven largely by a sharp rise in air fares during the school holidays, alongside higher food prices. The Bank of England has said it expects inflation to peak at around 4% in September before easing back towards its 2% target. However, with food price inflation at 4.9%, households and businesses continue to feel the pressure of rising costs. You can read more on the BBC’s coverage here .