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

July's Retail Prices Index (RPI) measure of inflation - which is often used to determine increases in the cost of train travel - will be announced on Wednesday.

The U.K.'s annual inflation rate hit a hotter-than-expected 3.8%in July, according to data released by the Office for National Statistics (ONS) on Wednesday.