Increase inflation In the UK for a second consecutive month after July, applying pressure on Bank of England to review the rate of reduction of interest rates.
Specifically, consumer prices rose 3.8% compared to the previous year, from 3.6% in June and the fastest pace since January 2024, the National Statistical Service said on Wednesday (20.8.25). Increasing inflation, provided by the Bank of England, is mainly due to airline tickets, hotels and fuel, according to Bloomberg.
Inflation in services, a closely monitored indicator of pressure on underlying prices, increased to 5%, over 4.9% of the Bank of England. The pound deleted a fall after the report that trade was negotiated at $ 1,3492.
Airline tickets, fuel, hotels and food pushes inflation to the UK
The data add evidence that companies respond to excessive increases in tax and minister’s minister’s salaries Rachel Ribs in April, moving billions of pounds at extra cost to consumers. Food inflation accelerated to 4.9%, from 4.5% last month and highest since February 2024.
The traders have limited their bets for future interest rates, since a decision to reduce interest rates to 4%, less than the foreseen, on August 7 led some policy -making managers to warn of the risk of secondary impact and wage prices.
The following evidence shows that the economy and the labor market can withstand better than they were afraid of, reinforce the need for attention. On Tuesday, the traders set the possibility of lower interest rates in November to one in three, with only 50% probability by the end of the year.
The figures are also a blow to Reeves and Prime Minister Keir Starmer, who were promising to improve the standard of living of the “workers”. On the contrary, the recovery of real incomes disappears as the renewed inflation clashes with a cool labor market, with their budget to increase taxes in October accusing critics of provoking both.