ONS Methodology Drives UK Inflation Spike Through European Air Fare Surge

UK inflation rose unexpectedly in July 2025 primarily due to a methodological quirk by the Office for National Statistics (ONS) in comparing air fares, with European flight prices rising sharply between mid-July 2024 and 2025 due to differing school holiday timings. British holidaymakers made a record 94.6 million trips abroad in 2024, spending a total of £78.6 billion, which led to a widening tourism deficit as outbound spending outpaced inbound visits, raising concerns at the Treasury. Popular destinations like Spain, France, and Italy saw slight declines in visitors as UK travellers explored alternative spots such as Croatia and Morocco. Meanwhile, UK holidaymakers are being warned to adjust their heating and hot water systems before leaving for vacation, since leaving these on can add between £100 and £500 to annual energy bills due to unnecessary heating, even when homes are unoccupied. Experts emphasize that a simple setting adjustment can prevent significant energy waste and help families save money, with average UK household energy bills around £1,834 annually. These advisories come as many prepare for summer holidays across Europe and within the UK.