Prices in the UK rose by 3.8% in the year to July, driven mainly by a jump in the price of air fares coinciding with the school summer holidays.
That means inflation is at its highest level for 18 months and still far above the Bank of England’s target of 2%.
A rise in the cost of eating out, as well as food and non-alcoholic beverages more generally, also helped to push up prices.
The Bank’s latest forecast expects inflation to peak at 4% in September.
ONS Chief Economist Grant Fitzner said the “hefty” increase in air fares was the “largest July rise since collection of air fares changed from quarterly to monthly in 2001”. He said the jump was “likely due to the timing of this year’s school holidays”.
“The price of petrol and diesel also increased this month, compared with a drop this time last year. Food price inflation continues to climb, with items such as coffee, fresh orange juice, meat and chocolate seeing the biggest rises,” he added.
