UK Inflation Rises to 3.8%: What It Means for You
Economy / Finance

UK Inflation Rises to 3.8%: What It Means for You

The pace of consumer price increases in the United Kingdom accelerated recently, with the annual inflation rate reaching 3.8 percent in July 2025, according to data released Wednesday by the Office for National Statistics. This represents an increase from the 3.6 percent recorded in June. The July figure is the highest since January 2024, when the rate stood at 4.0 percent.

Month-on-month, consumer prices rose by 0.1 percent in the seventh month of the year. Core inflation, which excludes volatile energy, food, alcohol and tobacco prices, mirrored the overall figure, also registering 3.8 percent in July – a slight increase from the 3.7 percent observed in June.

The transport sector made the largest upward contribution to the change in the annual rate, with a notable increase in air fares playing a significant role.