Inflation hits 4.8%

RPI inflation (the inflation measure favoured by union negotiators) rose to 4.8% in July while the CPI measure hit 3.8% — its highest rate since January 2024. The increase was driven by a sharp rise in air fares (although this might be a data quirk) and higher motor fuel costs.

Food prices are up 4.9% in the past year. Food and fuel costs are both very important for household costs, so this is bad news for workers.