UK inflation in July 2025:

The annual inflation rate in Great Britain achieved a hotter than expected 3.8%in July in July.

Economists surveyed from Reuters had expected the inflation to reach 3.7% in the twelve months to July after chosen up to 3.6% in June, which exceeded the forecasts.

The core inflation in July, which excludes fleeting energy, food, alcohol and tobacco prices, rose by 3.8% compared to 3.7% in the twelve months to June.

The increase in inflation has led the consumer price index to the highest annual interest rate since the beginning of last year, commented Grant Fitzner, chief economist at ONS, on Wednesday.

“The main driver was a high increase in air prices, the greatest increase in air prices in July in 2001. This increase was probably due to this year’s school holidays,” he said in a position on the X Social Media platform.

“The price of petrol and diesel increased this month compared to a decline in this time last year. Inflation of the food price continues to increase with articles such as coffee, fresh orange juice, meat and chocolate when you see the greatest increases,” he added.

The British Chancellor Rachel Reeves replied on Wednesday that it had more to do to facilitate the cost of living.

“We made the decisions that are necessary to stabilize public finances and we are far from the double-digit inflation that we have seen under the previous government, but there is more to do,” she said in email comments.

The British pound was largely constant after the data publication against the dollar, which was traded at USD 1.3489.

The inflation of services 5% of 4.7% in the previous month in July. The pressure is seen as another obstacle in the attempts of the Bank of England to tame inflation, according to analysts, as service -oriented companies increase prices in order to cover the costs of rising wages and the latest hike to national insurance contributions.

The higher reading in July also reduces the likelihood that the Bank of England will reduce another interest rate this year.

“I am upset about the inflation of the services, it looks sticky, and in view of the importance of services for the British economy, I look at it and think if the MPC (the monetary policy committee of the central bank) also looks at it – and I am sure that they are a tariff in November” James Sprolle, head Economist Economist, Economist, Economist, Economist Economist, Hande -Economister at Handelsbank, tells of CNBC.

The latest data comes afterwards The Bank of England at the beginning of this month voted a good margin to reduce interest rates from 4.25% to 4%How the central bank has resumed, which describes as a “gradual and careful” approach for monetary relaxation.

While it was expected from the Boe at that time that he would go to interest rates by 25 basis points, retailers and economists absolutely wanted to see the support of support for the move. In the end, the political decision-makers had to vote twice about the tariff shortcut decision, and the majority of 5 to 4 decided to cut it.

The members of the Boe Policy Committee had to weigh the sticky inflation With a cooling job market And lackluster, but slightly relaxed growth. GDP data last week showed a surprise of 0.3%in the second quarter.

The Boe observes inflation data closely, According to the forecast of the consumer price index, a maximum of 4% could achieve in September Before the withdrawal in the early half of 2026.

In the estimates of Deutsche Bank, Great Britain remains “a dimming” after an annual inflation rate of 4%.

“We assume that the price pressure will become soft in the fourth quarter of 2025, and will follow 3.5% YOY (compared to the year) by the end of the year,” said Sanjay Raja, Senior Economist at the German lender, on Friday in email comments.

“In addition, we expect the price pressure to be relieved next year. In our models, we have a headlining CPI in the second quarter of 2026 before we landed 2.25% YOY in 2026 in the fourth quarter of 2026.