STORY
The Office for National Statistics has said that inflation rose by an unexpected 3.8% in July, bringing into question the Bank of England’s decision to cut interest rates. The ONS said that transport, particularly air fares, made the largest upward contribution to the monthly increase which was a little higher than the Bank of England had anticipated. The increase was the highest since January 2024, but the Bank of England said that it was committed to bringing down inflation to the target 2%.