UK inflation rises to 3.8% driven by higher airfares

Prices in the UK rose by 3.8% in the year to July, driven mainly by a jump in the price of airfares 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%.

The Bank's latest forecast expects inflation to peak at 4% in September.