Rail fares in England on track to rise by as much as 5.8% next year as inflation accelerates more than expected – business live

Higher air fares, petrol and food prices push inflation to 3.8%, highest since early 2024; European shares slip as tech and defence stocks fall

UK inflation has accelerated more than expected to 3.8% in July, the highest annual rate since early last year, driven by higher transport costs, such as air fares, and food prices.

It’s the second month in a row that inflation has surprised on the upside.

It compares with an annual increase in the consumer prices index of 3.6% in June, according to the Office for National Statistics.

The core rate, which strips out food and energy, rose to 3.8% from 3.7%, also higher than expected.