UK inflation hits 18-month high amid rising food and airfares

UK inflation rose to 3.8% in July, driven mainly by higher air fares and food prices, reaching its highest level since January 2024. The increase, influenced by seasonal factors and rising costs of beef, chocolate, and fuel, suggests the Bank of England may delay interest rate cuts, with inflation expected to peak at 4% in September. Policymakers face a balancing act between controlling inflation and supporting economic growth, amid ongoing cost-of-living pressures for families.