British inflation increased because summer expenditure pushed hotels and flight tickets

Sunday 17 August 2025 9:23
| Updated:

Sunday 17 August 2025 9:24

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British inflation will increase higher last month because summer expenditure encourages flight and hotel costs, and food prices continue to rise.

An economist says “oasis lumps” can contribute to higher accommodation prices in July.

The inflation of the Consumer Price Index (CPI) is widely expected to increase in July, from the 3.6 percent level recorded in June, when the National Statistics Office issued its latest Dataset on Wednesday.

Sanjay Raja, a senior economist for Deutsche Bank, said he estimated that price pressure would push CPI to be 3.8 percent last month.

“July inflation is likely to see the momentum of prices to rise further to uncomfortable areas,” he wrote in a research record.

School summer holidays tend to see airplane tickets, train costs, and the price of holiday packages increases higher.

The king also pointed out to the possibility of the price of a spike hotel which he said could be partially linked to the British band Oasis started their reunion tour in July.

The concert that brought fans to the arena in Cardiff, Manchester, London and Edinburgh.

The price of accommodation can rise by nine percent in July, compared to June, “with an Oasis concert has a strong impact on the price of Manchester,” said the economist.

Meanwhile, the price of food has risen in recent months – some are driven by higher materials, labor, and regulatory costs.

Annual food price inflation increased for the third month in a row in June, reaching the highest level since February 2024.

The king said food inflation was likely to move higher in July, but could “approach the peak”.

Andrew Goodwin, Head of the British Economist for the Oxford economy, estimates that CPI inflation will rise to 3.7 percent in July.

He said that the increase in fuel prices in the pump could help encourage higher monthly inflation.

Bank of England estimates that inflation will increase further this year and peak by about four percent in September, before it decreases over the next two years.

The central bank said that accelerating the price of food and energy has become a major driver in improving inflation.

By Anna Wise, PA Business Reporter