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U.K. Inflation Rises to 3.8% in July 2025

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  • Kate Nicholls, Chief Executive, UKHospitality – Image Credit UKHospitality   

The Government should reduce business costs to get inflation under control and drive growth, the trade body said.

New data from the Office for National Statistics (ONS) shows that inflation rose to 3.8% in the year to July this year, up from 3.6% in June.


Kate Nicholls, Chair of UKHospitality, said: “It’s clear the UK economy is stuck in a low growth and high inflation trap, and the only certainty is that increasing taxes and costs would make the situation worse.

“Our latest member survey data shows that the £3.4 billion in additional annual cost that hit the sector in April has forced eight in 10 hospitality businesses to put up prices – which is no doubt a factor unfortunately fuelling inflation.

“Pulling the tax lever on hospitality once again would be the worst possible thing to do and instead the Government should lower business rates, fix NICs and cut VAT at the Budget to back hospitality and stop the sector from being taxed out.”


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