The rate of UK inflation saw a rise above its target 2% in July, according to the latest data from the Office for National Statistics (ONS).
The consumer price index (CPI) increased by 2.2% in the 12 months to July 2024, above the 2% rate in June.
Despite the above-target rise, the ONS said inflation is “well below” its peak of 11.1% in October 2022.
Month on month, CPI fell by 0.2% in July compared with a drop of 0.4% in July 2023.
Food inflation remained unchanged month on month at 1.5%, but was higher than the 0% rate of July 2024.
The ONS said the largest upward trend came from housing and household services such as gas and electricity, while restaurants, hotels and transport saw the largest downward trend.
British Retail Consortium director of insight Kris Hamer warns of headline inflation rising in the coming months.
He 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.
“There was also good news across wider retail, with prices for clothing, furniture and household appliances all down on the month before.
“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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