The inflation rate in the United Kingdom surpassed forecasts in July, accelerating to 3.8% year-on-year, compared to 3.6% in June, as announced by the Office for National Statistics (ONS) today, increasing pressure on the British government.
This inflation level, the highest since January 2024, exceeds the expectations of analysts consulted by Bloomberg, who predicted a rise of 3.7%.
“We are far from the double-digit inflation experienced under the previous government, but there is still much to do to ease the cost of living,” acknowledged Finance Minister Rachel Reeves in a statement cited by AFP.
The release of this figure follows last week’s announcement of the second quarter’s gross domestic product (GDP) growth, which remained at 0.3%, fueling concerns of stagflation (sustained inflation combined with fragile growth).
This inflation rate further intensifies pressure on the Labour government, which is struggling to revive economic activity after announcing significant tax increases and drastic public finance cuts last year.
