Where inflation jumped in July – and where it eased
A steep jump in the cost of air travel, along with increases in the price of many everyday items from tea and coffee to potatoes and eggs, helped push the UK's overall rate of inflation in July to an 18-month high.
The average cost of air tickets was 15.5% higher last month than it was a year earlier, compared with an annual rise of just 0.5% in June, according to data published by the Office for National Statistics (ONS).
When comparing figures month on month, air fares jumped 30.2% between June and July: more than double the rise of 13.3% between the same months in 2024, and the largest July increase since monthly inflation data for air travel began in 2021.
Prices accelerated for a range of household groceries last month, which further pushed up the cost of living.
The average cost of coffee was up 18.0% year on year in July compared with 12.3% in June; tea was up 4.9% compared with 0.5%; fruit juices were up 8.6% compared with 3.6%; and whole milk was up 11.3% compared with 8.4%.
Inflation also picked up pace for margarine, eggs, potatoes, crisps, breakfast cereals, chocolate and bread.
Energy bills edged higher, with electricity costs up 8.0% year on year in July, greater than the 4.5% jump in June, while gas was up 13.0% compared with 12.3% the previous month.
Both petrol and diesel recorded a negative annual rate of inflation in July, but by a smaller margin than in June, indicating a rise in the cost of filling up at the pumps.
The average price of petrol in July was down 7.3% year on year, compared with a fall of 9.5% the previous month, while diesel was down 6.0% compared with a previous drop of 8.6%.
Not everything saw a jump in price last month, however.
Items where prices fell faster year on year in July than in June included pasta and couscous, fish, olive oil and sugar.
Inflation eased for cheese, which stood at 3.4% in July compared with 5.2% in June, while children's shoes swung from positive annual inflation (1.9%) to negative (down 1.9%).
Below are some examples of how the Consumer Prices Index (CPI) inflation rate has eased or accelerated.
Two figures are listed for each item: the average rise in price in the 12 months to June, followed by the average rise in price in the 12 months to July.
– Examples where annual inflation has accelerated, ranked by the size of change:
Passenger air travel: June up 0.5%, July up 15.5%Coffee: June up 12.3%, July up 18.0%Cinemas/theatres/concerts: June up 0.4%, July up 5.7%Fruit & vegetable juices: June up 3.6%, July up 8.6%Tea: June up 0.5%, July up 4.9%Electricity: June up 4.5%, July up 8.0%Hotels/motels: June down 2.7%, July up 0.3%Whole milk: June up 8.4%, July up 11.3%Breakfast cereals: June up 2.2%, July up 5.1%Eggs: June up 3.4%, July up 4.9%Ready-made meals: June up 4.5%, July up 5.7%Potatoes: June up 0.7%, July up 1.9%Crisps: June up 4.2%, July up 5.1%Chocolate: June up 16.3%, July up 17.2%Women's clothes: June up 2.3%, July up 2.9%Soft drinks: June up 5.6%, July up 6.1%
– Examples where annual inflation has eased:
Children's footwear: June up 1.9%, July down 1.9%Passenger train travel: June up 8.4%, July up 6.1%Fridges/freezers: June up 1.7%, July down 0.5%Dried fruit/nuts: June up 7.4%, July up 5.4%Cheese/curd: June up 5.2%, July up 3.4%Yoghurt: June up 3.0%, July up 1.2%Children's clothes: June down 2.1%, July down 3.8%Pasta/couscous: June down 0.7%, July down 2.1%Fish: June down 0.4%, July down 1.8%Washing machines/dryers: June down 2.0%, July down 3.4%
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
27 minutes ago
- Yahoo
Investors see risks for market as Powell walks tightrope at Jackson Hole
By Davide Barbuscia NEW YORK (Reuters) -Investors are bracing for volatility as Federal Reserve Chair Jerome Powell walks a fine line between curbing inflation and supporting the labor market, with thin August trading poised to magnify any market moves from his Jackson Hole speech on Friday. Wall Street largely expects Powell will signal an imminent easing in monetary policy, but concerns that U.S. President Donald Trump's tariffs could reignite price pressures may force him to tread carefully. Meanwhile, Powell faces relentless pressure from the Trump administration to cut interest rates, turning his final address as Fed boss at the Jackson Hole economic symposium into a test of Fed independence. "There is a market tightrope here from a macroeconomic perspective between the inflation data and what's happening in the employment market," said Tony Rodriguez, head of fixed income strategy at Nuveen. "And now you combine that with the political tightrope that's not usually there that he has to navigate. It makes for an incredibly difficult, tricky situation," he said. Adding to the drama, Trump on Wednesday urged Fed Governor Lisa Cook to resign over mortgage allegations raised by one of his political allies, intensifying his effort to gain influence over the U.S. central bank. Cook said she had "no intention of being bullied" out of her post. "This (Jackson Hole) would be a good opportunity for Powell to speak about the importance of independence," said Idanna Appio, portfolio manager at First Eagle Investments, noting that the pressure could eventually lead to a more dovish rate-setting Fed board. A soft July jobs report and hefty downward revisions to earlier job figures fueled bets the U.S. central bank would cut interest rates from the current 4.25%-4.5% range later this year. But a surge in wholesale prices in July dimmed investor hopes for a half-point move at the Fed's next rate-setting meeting in September, leaving markets braced for about two 25 basis point cuts for the rest of the year. So far, consumers have been spared a sharp jump in prices despite Trump's escalating import tariffs, but doubts linger over how much of those duties will filter through to households in the months ahead. "I expect that Powell will signal a change in monetary policy that suggests that we'll resume the rate-cutting cycle on September 17, and markets will welcome that news," said Michael Arone, chief investment strategist at State Street Investment Management. "But I think he'll be reluctant to give too much transparency on the future path of rate cuts, because he knows what he doesn't know," Arone said, referring to the inflationary impact of tariffs. 'EXPECT VOLATILITY' Investors see any pushback from Powell against an imminent shift to monetary policy easing as the biggest risk heading into the Jackson Hole, Wyoming, event, with poor liquidity in summer trading expected to exacerbate the market reaction. "It's next to the last week of August, it's Friday, markets might be a little more susceptible to some volatility as a result of a little bit less liquidity ... (this) might lead to something of an unexpected move," said Rodriguez at Nuveen. Powell's speech comes amid market concerns of stagflation, a dreaded mix of sluggish growth and sticky inflation that could limit the Fed's ability to ride to Wall Street's rescue, just as a tech stock selloff this week highlighted long-standing worries over steep stock valuations. "Stagflation is a risk," said James Ragan, co-chief investment officer and director of investment management research at D.A. Davidson. "If Powell pulls back on the expectation for a rate cut in September, I think stocks would fall in that scenario and you obviously would see probably bond yields rise at least at the short end," he said. To be sure, Powell's address may ultimately be underwhelming for markets. Hot producer prices data in July removed the possibility that the Fed could deliver a jumbo-sized cut in September, limiting the scope for resistance from an inflation-focused Powell against those expectations. At the Jackson Hole conference in 2022, Powell echoed late Fed chair Paul Volcker with a hardline vow to crush inflation. This time, with inflation about 1 percentage point above the Fed's 2% target and a softening but still healthy job market, a subtler balance could be in the cards. Still, a balanced message could be perceived as hawkish, sparking price fluctuations in stocks and bonds over the next few weeks, said Shannon Saccocia, chief investment officer for wealth management at Neuberger Berman. "Our advice to clients has been to expect volatility," she said.
Yahoo
27 minutes ago
- Yahoo
Kia initiates European EV production with the New EV4 model
Kia has commenced the production of its first entirely electric vehicle (EV) designed for the European market, the EV4 hatchback, at the brand's manufacturing hub in Slovakia. Located in Zilina, the facility, known as Kia AutoLand Slovakia, has undergone substantial upgrades to its production lines to accommodate the manufacturing of the vehicle. Switch Auto Insurance and Save Today! Affordable Auto Insurance, Customized for You The Insurance Savings You Expect Great Rates and Award-Winning Service Kia says it has invested €108m to modernise the Zilina plant with new technologies, including an EV battery conveyor system. The EV4 is built on the Electric Global Modular Platform (E-GMP) of Hyundai Motor. Customers can choose between two battery sizes: a standard 58.3kWh and a larger 81.4kWh option. In February 2025, the company presented the exterior design of the new EV4 model range, unveiling saloon and hatchback variants. EV4 is equipped with energy features, including vehicle-to-grid (V2G) and vehicle-to-load (V2L) capabilities. Additionally, it features a lightweight aluminium bonnet and comes in a range of eight exterior colours, with a matte finish. The Zilina plant, which opened its doors in 2004, is a pivotal part of Kia's European strategy. Spanning 2km2, the facility employs approximately 3,700 individuals and is ideally situated to serve major European markets. Alongside the EV4, the plant manufactures other models like the Kia Sportage and Kia XCeed, including their hybrid and plug-in hybrid versions. The Zilina facility is said to have an annual production capacity of 350,000 vehicles and 540,000 engines. Since its inception, the plant has produced over five million units, contributing to roughly 11% of Kia's worldwide vehicle production, the company noted in a press release. The South Korean automaker has reported a 6.5% increase in revenues to a record Won29.35tn in Q2 of 2025, attributed to robust global demand for its hybrid models, increased average selling prices, and favourable currency exchange rates. "Kia initiates European EV production with the New EV4 model" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
27 minutes ago
- Yahoo
Yahoo polls: Did back-to-school costs stretch your family budget this year? Have your say
Despite easing inflation, Canadian parents face steeper back-to-school costs in 2025 with average spending at $700 per child, fuelling more financial stress Canada's annual inflation rate dipped to 1.7 per cent in July, down from 1.9 per cent in June, thanks in large part to a 16.1 per cent drop in gasoline prices from last year following the removal of federal carbon tax. However, two components that directly impact Canadian household budgets continued on an upward trajectory. Food prices rose 3.3 per cent with shelter costs climbing 3 per cent. While overall inflation cooled, core inflation remains elevated, intensifying financial pressure on Canadian families with the back-to-school season in full swing. Yahoo News Canada wants to hear from you on your experience this back-to-school season. It's already a big-ticket expense, back-to-school shopping might have strained your family budgets more so this year amid U.S. tariffs and inflation surging prices. Did your back-to-school spend this year exceed your expenses last season? According to surveys conducted by several different polling firms, Canadian parents of kids in K-12/college expected to spend an average of about $700 per child on back-to-school items like books, clothing and supplies. A NerdWallet Canada survey conducted by the Harris Poll in July 2025 found that parents estimate they'll spend $741, on average — $200 more than last year's average. A different survey by Caddle and the Retail Council of Canada estimated the spend to be between $600 and $750 per child this back-to-school season, while a survey pinned the cost per child at just over $830. The surveys also found the respondents admit back-to-school season strains their financial budget with many saying they've already exceeded their budget. Parents also shared how they changed their shopping habits to keep up with tariff-driven price hikes. however, a majority say school supplies are expensive enough without tariffs, which only elevate the existing financial strain. Potential impact of Trump's tariffs on Canadian back-to-school shopping U.S. President Donald Trump hiked the Canadian tariff rate from 25 per cent to 35 per cent on Aug. 1. But, what does that mean for Canadian families shopping for back to school this summer? Many of the school supplies, including clothing, sneakers and backpacks, are made in countries facing high U.S. tariffs which could result in a ripple effect transcending borders as production and shipping charges soar. Canadian prices often tend to walk hand-in-hand with U.S. prices, meaning brands bearing the brunt of tariffs and selling across both U.S. and Canadian markets may match U.S. price increases to maintain parity. Clothing, especially boys' and girls' apparel, is up 25 per cent in the U.S. Backpacks and travel bags already cost 30 per cent more than they did in 2019. Canadian families shifting shopping habits, trying cost-saving strategies NerdWallet Canada survey takers say they are changing the way they shop to make room for the increased costs. While some parents are switching to cheaper brands or retailers, others are simply cutting back on back-to-school clothing and supplies this year. Other strategies include leveraging financial tools, such as using credit cards, buy now pay later, shopping early, hunting deals and sales, price-matching, thrift stores, exchanging and also buying Canadian-made goods. Despite Canada's economy technically calming, the back-to-school burden isn't letting up as families navigate turbulent waters amid a rise in essential costs. If you enjoy participating in Yahoo polls and making your voice heard, we'd love to hear from you in the upcoming polls. Stay tuned! Joy Joshi is a senior editor and writer at Yahoo News Canada.
