Rachel Reeves is facing a fresh headache as the Office for National Statistics has confirmed inflation rose to 3.8% in July 2025. The FTSE 100 opened negatively after the news. Prices rose as school holidays boosted travel costs and grocery bills remained elevated, economists said. The school summer holidays are likely to have seen airfares rise considerably, with airlines typically bumping up prices in July amid stronger demand from families.
Some experts said an "Oasis bump" could also have contributed to higher accommodation prices. The Office for National Statistics (ONS) will publish the latest inflation dataset at 7am. The rate of Consumer Prices Index (CPI) inflation is widely expected to have increased to 3.7% in July, from the 3.6% recorded in June.
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