UK inflation climbs toward 3.7 percent in July

The Office for National Statistics will release July CPI data as travel costs and groceries push prices higher.

UK inflation climbs toward 3.7 percent in July

The Office for National Statistics is expected to report CPI inflation at 3.7% in July, up from 3.6% in June, with the rise driven by summer holidays and higher grocery bills.
Economists say airfares and other travel costs typically rise in July as families take holiday trips, while grocery inflation remains stubborn.
Some analysts point to an 'Oasis bump' that may have pushed up accommodation prices during peak season.
The ONS will publish the data at 7am, providing the latest snapshot of how quickly prices are rising and what policymakers face next.

Rising prices spotlight the political stakes. For a government trying to balance spending with households losing ground on real incomes, July data could harden calls for fiscal restraint even as people feel the pinch.
The numbers will test the resolve of policymakers and the Bank of England to cool inflation without stifling growth. A stubborn reading could ripple through budgets, business plans, and consumer confidence.

Highlights

What comes next will reveal the resilience of households and the resolve of policymakers.