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Yahoo
a day ago
- Business
- Yahoo
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%
The Independent
2 days ago
- Business
- The Independent
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%
The Independent
3 days ago
- Business
- The Independent
Map: The most and least affordable areas to rent across the country
The average renter in England spends more than a third of their income on a home, new figures reveal. People earning a median salary could expect to spend 36.3 per cent of their income on an average-priced rented home in England in 2024, figures from the Office for National Statistics showed. This means rent was a third above the threshold that the ONS considers to be affordable. It also marks an increase on the 33.1 per cent of household income that average renters were paying in 2023. On the other hand, rents were below the 30 per cent threshold in Wales and Northern Ireland last year. Affordability increased in Wales, from 26.3 per cent of an average renter's income in 2023 to 25.9 per cent in 2024. In Northern Ireland, rents remained relatively flat, with the ratio increasing to 25.3 per cent from 25.1 per cent. England's average rent prices are driven higher by costs in London, where renters can expect to pay a significantly higher proportion of their salary on a home. It was the least affordable city with average rents of £1,957 per month across the capital, or 41.6 per cent of a typical renter's income. In the London Borough of Kensington and Chelsea, someone on the area's average income would have to spend three-quarters of their pay to keep a roof over their head. Outside of London, cities like Bristol, Bath, and Brighton, and commuter towns like Sevenoaks and Watford have risen above the 30 per cent threshold. Across England, monthly rents averaged at £1,232 compared with £3,396 monthly household incomes. The top 10 least affordable council areas in England and Wales, all in London: Kensington and Chelsea - 74.3% Westminster - 55.8% Wandsworth - 54.0% Camden - 51.7% Hammersmith and Fulham - 51.3% Haringey - 48.3% Lambeth - 47.1% Merton - 46.8% Islington - 45.5% Richmond upon Thames - 45.3% Sarah Coles, head of personal finance for Hargreaves Lansdown, said: 'Renters faced a horrible squeeze on their incomes, and there's every sign it has got worse since. ' Landlords are continuing to sell up – concerned about higher costs from more regulation and more tax. 'It means more tenants chasing dwindling numbers of properties, so rents are continuing to rise. 'At the same time, although wages have risen impressively, they have been consistently outpaced by private rental increases.'
The Guardian
3 days ago
- Business
- The Guardian
Tenants in England spending ‘unaffordable' 36% of income on rent, shows survey
Renting homes in England is becoming increasing unaffordable, according to new official figures which show tenants pay an average of 36.3% of their income on rent, a figure that rises to 41.6% in London. People earning a median salary spent 36.3% of their income on an average-priced rented home in England in 2024, up from 34.2% in 2023, according to the Office for National Statistics (ONS). The figures for the financial year show that the price of renting a home in England is moving further beyond a 30% rent to income threshold that the ONS considers to be affordable. The new data has fuelled calls for rent regulation to end a growing affordability crisis for renters. London was the least affordable region with rents of £1,957 per month, meaning tenants had to pay on average 41.6% of their income on housing. The top 10 least affordable council areas were all in London, topped by Kensington and Chelsea where those on median incomes had to pay 74.3% of their gross earnings on rent. The next worst were: Westminster (55.8%); Wandsworth (54%); Camden (51.7%); Hammersmith and Fulham (51.3%); Haringey (48.3%) Lambeth (47.1%); Merton (46.8%); Islington (45.5%); and Richmond (45.3%). All 32 council areas in London have been above the 30% affordability threshold for eight of the nine financial years ending 2016 to 2024, the ONS bulletin said. Outside London, the least affordable areas based on the percentage of salary paid on rent were: Bristol (44.6%) Bath and North East Somerset (42.7%) Brighton (42.7%) and Trafford (41.3%), as well as Sevenoaks (42%) and Watford (41%) which have a high number of London commuters. The figures showed that rents last year rose faster than incomes in England. Faster rising wages meant the ratios of rent to income briefly dipped in 2022/23, but since then the ratio has worsened and rents look set to continue to outstrip rises in incomes. In some regions of England and in Wales and Northern Ireland, rents were found to be still affordable, according to the ONS metric. The most affordable region in England was the north east, with average rents of £641 per month, or 19.8% of income. In Wales, all but two of the 24 council areas had average rents that were below the 30% affordability threshold. Only in Cardiff and the Vale of Glamorgan was it above this level. In Northern Ireland, rents were relatively flat with the ratio ticking up to 25.3% from 25.1% from the previous year. Tom Darling, the director at the Renters' Reform Coalition, said: 'These figures show that the biggest issue facing renters – the cost of their rent – isn't going away any time soon. 'Though the government's renters' rights bill will introduce crucial improvements to security and standards, it won't put a lid on the affordability crisis. While millions are forced to spend less on essentials like groceries to afford their rent, the government will have a hard time making the case at the next election that they've delivered for renters.' Darling added: 'The government should establish a national rental affordability commission to look at ways to bring rents down relative to incomes – including investigating different types of rent regulation.' Sarah Coles, the head of personal finance for Hargreaves Lansdown, said: 'Renters faced a horrible squeeze on their incomes, and there's every sign it has got worse since. Landlords are continuing to sell up – concerned about higher costs from more regulation and more tax. 'It means more tenants chasing dwindling numbers of properties, so rents are continuing to rise. At the same time, although wages have risen impressively, they have been consistently outpaced by private rental increases.' Joseph Elliott, lead analyst at the Joseph Rowntree Foundation, said: 'High rents are locking people out of secure homes and driving poverty and homelessness. 'The government needs to tackle the root causes of the housing crisis— unaffordable rents, frozen housing support, and a chronic shortage of social housing.'
Daily Mail
14-08-2025
- Business
- Daily Mail
Small firms turn to virtual employees to combat National Insurance
Business owners are turning to virtual staff and contractors following the increase in employer National Insurance contributions. Small businesses struggling with the burden of higher costs since employer NICs were increased from 13.8 per cent to 15 per cent in April say they are less likely to employ younger, less experienced employees. It comes as figures published today show the number of payrolled employees fell by 169,000 between June 2024 and June 2025, while the number of vacant roles is down 145,000 from a year ago. The biggest fall was among 25-34 year olds, down by 106,000 since July 2024. The Office for National Statistics said 'some firms may not be recruiting new workers or replacing workers who have left'. 'We're moving to the use of more contractors following April's series of additional costs added on to hiring employees on payroll. The risk and the cost of investing in a younger or more inexperienced person is now too much for our small business, so paying out a much higher freelance rate, but for someone who already knows how to do the job with no additional support required, is much more economically viable.' Kate Allen, owner of Kingsbridge-based Finest Stays, has pressed pause on all hiring and is instead using a virtual assistant to help. 'I'm fed up with paying more national insurance after yet another hit from the Labour government. The best thing we've done lately is trial a virtual assistant for a couple of months. No HR hassle, no holiday pay, cheaper than hiring someone full-time and the quality is excellent. It's scalable for process-driven jobs and I'd recommend it to any business owner.' Jonathan Moser, chief executive of property management firm Mo'Living is using a mixture of the two, with 12 contractors and virtual assistants. 'The NI increase raised employment costs enough to tip the balance; full-time hires mean fixed overheads, while contractors offer flexibility, scalability and access to specialist skills without the commitment of salaries, holiday pay or sick leave.' There are growing concerns that the Chancellor could raise taxes on businesses again in the Autumn Statement, as the worsening economic picture takes its toll on growth. While some business owners are trying their best to rein in costs, others may be forced to close entirely, with the hospitality industry facing the biggest casualties.
