Rate of inflation rises for first time this year

14 Aug 2024

The UK rate of inflation has risen for the first time in 2024, official data has revealed.

Prices increased by 2.2% in the year to July, data from the Office for National Statistics (ONS) showed. Experts had previously anticipated an increase in the rate of inflation, and the ONS found that the rise was caused by prices for gas and electricity falling by less than they did a year before.

Whilst the inflation rate has risen, it remains close to the Bank of England's target of 2%.

Commenting on the data, Grant Fitzner, Chief Economist at the ONS, said: 'Inflation ticked up a little in July as although domestic energy costs fell, they fell by less than a year ago.

'This was partially offset by hotel costs, which fell in July after strong growth in June.'

Meanwhile, the British Chambers of Commerce (BCC) said that concern about inflation among small businesses has been falling since the start of 2024. Stuart Morrison, Research Manager at the BCC, stated: 'Businesses will be pleased to see that inflation remains close to target, despite a small rise in the CPI rate last month. 

'An increase was expected, with our own forecast suggesting inflation of 2.3% in Q4 2024, and the trend in lower rates likely to persist. This has already brought a welcome interest rate cut from the Bank of England earlier this month, and we expect at least one further reduction this year.'