The Office for National Statistics has reported a rise in inflation for July, reaching 2.2%. This marks the first increase of 2024, following a period of decline earlier in the year when inflation settled at 2% for both May and June.

This uptick was anticipated, as energy prices are now falling at a slower rate compared to a year ago. As a result, inflation has exceeded the Bank of England’s target once again. However, this was expected by the Bank, and many economic forecasters predict that inflation will remain above 2% for the remainder of the year.

On a positive note, inflation for services decreased from 5.7% to 5.2% in July, a more significant drop than anticipated. This reduction is mainly attributed to lower inflation in restaurant and hotel pricing, influenced by temporary factors such as the pricing impact of Taylor Swift’s concerts and the recent stabilization of minimum wage increases.

Despite this, the overall increase in inflation indicates ongoing pressure on prices. Business owners should continue careful budgeting and review their pricing strategies to maintain profit margins.

For more details, visit: ONS Inflation Report