UK inflation rose for the first time this year to 2.2% as food prices failed to ease for the first time since March 2023.
The latest consumer price inflation data from the Office for National Statistics (ONS) showed that food inflation remained unchanged at 1.5%, after falling for the previous 15 months after it hit a 45-year high of 19.2% in March 2023.
Clothing and footwear inflation rose2.1% in July, up from 1.6% the month before, while furniture and household goods further deflated 1.7% last month.
The headline inflation figure, taking into account costs such as housing, transport, and energy, rose above the Bank of England’s 2% target to 2.2%.
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British Retail Consortium director of insight Kris Hamer said: “Despite prices falling month-on-month, headline inflation returned above the Bank of England’s 2% target. This was mainly driven by slowing deflation for gas and electricity bills, which had seen big price drops in July 2023 compared to this year.
“Food inflation was unchanged, after falling for the preceding 15 months, as increasing commodity costs over 2024 began to filter into prices, however key ingredients like rice and olive oil did see a welcome price drop on the previous month.
“With headline inflation showing signs of rising further, retailers face the prospect of another large rise in business rates next year, which are based on September inflation rates.
“This penalises the retail industry, as retail products currently have generally lower inflation levels than the headline figure on which business rates rises are based.”
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