Categories: Channel NewsRetail

ONS reports rise in UK’s inflation for July

The Office for National Statistics has revealed a 2.6 percent rise in inflation over July.

According to the department, the inflation is largely down to more expensive air fares and housing. The Retail Prices Index, which covers housing, rose from 2.8 percent in June to 3.2 percent in July. Air fares rose 21.7 percent on the back of increased flights to European destinations.

Another reason given for the increase was more second hand car sales, however, this was dampened as fuel prices fell.

A Treasury spokesperson told the BBC that, although inflation has halved since a peak in September, any increase “is disappointing”. The spokesperson said that the Coalition understands how difficult circumstance are for families, which is why it has reduced income tax and frozen council tax and fuel duty.

The ONS reported price rises in rent, alcohol, tobacco, food, restaurants, and leisure. Clothing and footwear prices did fall, however, ING’s James Knightley told the BBC this drop was the smallest June to July decrease since 1996, therefore “we really need to take the June and July figures together, and this implies that the downward trend in prices remains in place”.

The Bank of England is expected to introduce further monetary easing this year with a view to bolstering the country’s economy.

Tamlin Magee

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