Summer Spending Surges – Inflation Takes a 30‑Point Leap
Travel Costs to the Rescue (or the Curse?)
July’s CPI curve flurried up more than analysts guessed: air‑fare prices jumped a whopping 30.2% between June and July – the steepest rise since the first data roll‑out in 2001.
Looks like you’ll have to book a flight NOW or pay 30% more for a weekend getaway!
Petrol and Diesel: The Two‑p & Two‑point‑Nine‑p Surge
Gas pumps aren’t heading out of business – they’re just getting a bit more popular. Petrol went up 2p per litre and diesel increased by 2.9p per litre in the same period. If you’ve been watching your monthly fuel bill, expect it to have a tiny, yet noticeable, uptick.
Restaurants & Hotels: A Good Night, A Better Price
Late‑night stops, weekend stays, and the “room rate for the night before” craze pushed up restaurant and hotel prices last month. It’s a classic case of demand dancing with supply: the more people stay, the more expensive the stay.
Annualised Numbers: June vs. July
- Annualised CPI fell to 3.8% in July, nudging up from 3.6% in June – above the projected 3.7%.
- Core inflation for the previous 12 months hit 3.8% – a step up from the 3.7% in June.
Chancellor Rachel Reeves Says: “No More Fat to Trim”
The talk of cutting costs hits the hospitality sector hard. With job cuts in the air and businesses on the brink, the Chancellor stresses that the room for trimming is basically gone.
Night‑Time Economy Under Scrutiny
— Michael Kill’s Take
Michael Kill, CEO of the Night Time Industries Association, outlined the crunch:
- Inflation hits 3.8%—the night‑time economy feels the squeeze.
- Hospitality faces increased food, energy, and transport costs while margins are thin.
- “After years of cost‑cutting, we’re at the limit. Trimming further without harming quality or staff levels is near impossible.”
- He warns that this relentless inflation could chip away at a sector still rebounding from the pandemic shock.
“Policymakers need to see that relentless price rises cut households and the very businesses behind vibrant city centres,” Kill added. “Supporting operators while safeguarding quality and jobs is key to keeping the night‑time economy alive.”
Takeaway
Inflation’s climb isn’t a one‑off; it’s pushing the cost of living up everywhere, from travel tickets to evening meals. While you’re covering the extra airfare, remember it’s not just the sky getting pricier – the ground has seen a rise too. If you’re in the hospitality groove, brace yourself: you’ll need to champion quality, workforce and finance all at once!
