UK inflation ticks higher in July, clothing prices fall 1.9%

The UK’s inflation rate edged up in July 2025, with housing and services costs keeping overall price growth elevated, even as clothing and footwear prices declined.

The Consumer Prices Index (CPI) accelerated, rising 3.8 per cent in the year to July compared with 3.6 per cent in June – its highest level since January 2024. On a monthly basis, CPI increased 0.1 per cent, contrasting with a 0.2 per cent decline a year earlier.

The Consumer Prices Index including owner occupiers’ housing costs (CPIH) also rose by 4.2 per cent in the 12 months to July, slightly higher than the 4.1 per cent recorded in June, on a monthly basis, CPIH was flat, unchanged from July 2024, the Office for National Statistics (ONS) said in a release.

Core inflation remained stubbornly high. Core CPIH stood at 4.2 per cent, easing slightly from 4.3 per cent in June, while core CPI ticked up to 3.8 per cent from 3.7 per cent. Goods inflation in both indices rose to 2.7 per cent, while services inflation was steady at 5.2 per cent for CPIH and climbed to 5 per cent for CPI.

Clothing and footwear, meanwhile, registered price declines. CPIH data showed prices in this category falling 1.9 per cent on the month, compared with a 1.7 per cent fall a year earlier.

ALCHEMPro News Desk (HU)