Prices in the UK rose even faster than expected last month, reaching the highest level in 18 months, according to official figures.
Inflation hit 3.8% in July, data from the Office for National Statistics (ONS) showed.
The last time prices rose that fast was in January 2024.
The Consumer Prices Index (CPI) rate is up from 3.6% in June and is anticipated to reach 4% by the end of the year.
Economists polled by Reuters had only been expecting a 3.6% rise.
More unwelcome news is contained elsewhere in the ONS’s data.
Train tickets
Another metric of inflation used by the government to set rail fare rises, the Retail Prices Index (RPI), came in at 4.8%.
It means train tickets could go up 5.8% next year, depending on how the government calculates the increase.
This year, the rise was one percentage point above the RPI measure of inflation.
These regulated fares account for about half of rail journeys.
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Inflation up by more than expected
Why?
Inflation rose so much due to higher transport costs, mostly from air fares due to the school holidays, as well as from fuel and food.
Petrol and diesel were more expensive in July this year compared to last, which made journeys pricier.
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Coffee, orange juice, meat and chocolate were among the items with the highest price rises, the ONS said. It contributed to food inflation of 4.9%.
What does it mean for interest rates?
Another measure of inflation that’s closely watched by rate setters at the Bank of England rose above expectations.
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