The rate of price rises has fallen sharply, according to official figures.
The key, consumer price index (CPI) measure of inflation fell to 6.8% in the year to July, down from a rate of 7.9% in June, Office of National Statistics (ONS) data showed.
It means prices are still rising but at a slower rate than before as the energy regulator Ofgem changed the energy price cap in July which brought down bills.
Inflation came down as some goods and services became cheaper: • electricity • gas • milk • bread • cheese • petrol and diesel
The rate of inflation was still high due to price increases in: • hotels • air travel
There was a record fall in monthly gas prices, they fell by 25.2% between June and July, the largest drop since the ONS began collating the data in 1988. At the same time the cost of services rose to a 30 year record of 7.4% – the highest rate since March 1992.
Further inflation falls are expected, with the Bank of England forecasting the rate will drop to 5% by the end of the year, still more than double the Bank’s 2% inflation target.
Another measure of inflation, which does not track items susceptible to sharp rises and falls, such as food and energy, was static. Core inflation remained at 6.9%, likely to be of concern for the people who decide interest rates, the Monetary Policy Committee members.
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Food price rises remained seven times higher than a year ago at 14.9% despite a significant fall from the June 17.3% rate of food inflation.
The rate of inflation has taken on political significance. Prime Minister Rishi Sunak made halving inflation one of his five pledges and said it was “on me personally” if the goal isn’t met.
It’s the Bank of England, however, which is tasked with increasing interest rates to take make borrowing more expensive to take money out of the economy and reduce inflation. So far they’ve upped rates 14 times in a row with another increase due to come next month.
Following the announcement, the market expects the base interest rate will reach a high of 6%.
Prices began to rise during the pandemic when difficulty with goods supply chains pushed up costs.
This was worsened when Russia invaded Ukraine and energy prices soared as countries in the West competed for alternative sources of energy in their move away from Russian oil and gas.
The UK is now back at the rate of inflation seen the invasion in February 2022.
As the cost of energy has come down, so too has the overall rate of inflation.
Now, a key driver of overall price rises is an increase in wages. For the first time in nearly two years, wage growth in the private sector surpassed the rate of inflation.
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1:04
Inflation falls to 6.8% year to July – from 7.9%
Responding to the figures, Chancellor Jeremy Hunt said: “The decisive action we’ve taken to tackle inflation is working, and the rate now stands at its lowest level since February last year.
“But while price rises are slowing, we’re not at the finish line. We must stick to our plan to halve inflation this year and get it back to the 2% target as soon as possible.”
Labour’s shadow chancellor, Rachel Reeves, said: “Inflation in Britain remains high and higher than many other major economies. After 13 years of economic chaos and incompetence under the Conservatives, working people are worse off – with higher energy bills and prices in the shops.
“Labour’s plan to build a strong economy will make working people better off by boosting growth, improving living standards and cutting household bills.”
Flight delays are expected as the UK sees more heavy fog.
It comes after 20,000 people were affected by airport disruption on Thursday, according to travel journalist Simon Calder.
“Temporary air traffic restrictions have been put in place due to fog causing poor visibility. Some flights may be delayed throughout the day,” a spokesperson for Gatwick Airport said.
“London Gatwick apologises for any inconvenience. Passengers should contact their airline for further information,” they added.
At Gatwick 35 departures scheduled up to 11am are delayed and 26 flight arrivals are delayed up to the same time. Two flights are cancelled. At Heathrow 20 flight departures scheduled to leave before 11am are delayed. At Manchester airport 16 arrivals are delayed up to 11am.
Speaking to Anna Jones on Sky News Breakfast about the disruption yesterday Mr Calder said: “We had at London City Airport, at London Heathrow, the busiest in Britain, at London Gatwick, the second busiest, more than 40 cancellations in and out from each of those airports.”
The thick fog will continue on Saturday according to the Met Office, with some areas seeing visibility reduced to just 100 metres.
The worst of the fog is forecast to hit the South East and central England, while East Anglia and parts of South Wales will also be affected.
Forecasters have not issued any fog weather warnings yet but the Met Office said it will monitor the situation across the weekend.
Met Office meteorologist Liam Eslick said: “It’s that time of year when people are travelling around the country a lot and there are a lot of people on the roads.
“There is a lot of fog covering much of England, mainly the South East and central England, but the rest of the country is seeing quite a bit of thick fog too.
“It will be pretty murky on Saturday morning and there will still be fog patches that will take a little longer to clear.”
Meanwhile, there is a yellow warning in place for heavy rain in parts of Scotland for Monday and New Year’s Eve on Tuesday, leaving the start of 2025 “distinctly unsettled”.
Edinburgh’s Hogmanay celebrations could face “significant disruption” from rain, with organisers warning audiences to “prepare for all weather, wrap up warm and double-check with your travel operator for the latest updates.”
The yellow warning could see as much as 140mm (5.5in) of rain in places, as other parts of the UK will likely see rain, wind and possibly even snow later on next week.
The Met Office added that “more warnings are likely to be issued”.
At Heathrow, British Airways was forced to cancel a handful of flights due to fog on Friday, while others were delayed.
Flights at both Gatwick and Manchester Airport were disrupted, with delays of up to three hours at Gatwick, and some passengers were diverted to other airports.
“The diversions were absolutely extreme,” said Mr Calder. At Teesside Airport, flights were diverted to Newcastle, Aberdeen and even Dublin.
This could continue into the weekend if the misty weather persists.
A spokesperson for the UK’s main air traffic control provider Nats said it had implemented “temporary air traffic restrictions” at several airports on Friday due to the fog.
Can I get compensation if my flight is delayed?
If your flight is affected by the disruption, you won’t be able to get any cash back, according to Mr Calder, as “bad weather is beyond the airline’s control”.
“However, every airline that cancels a flight is obliged to find for its passengers an alternative flight as soon as possible,” he said.
While the fog likely won’t remain past the weekend, people should not hold out hope for sustained sunshine with wet and windy conditions expected for much of the country, the Met Office said.
Never wrestle with a pig. You get dirty. And besides, the pig likes it.
Looking at the festive ding-dong that’s broken out between Kemi Badenoch and Nigel Farage, you do wonder if the Tory leader should take on board this famous quote – because there was only ever going to be one winner from this spat.
The Reform UK leader has spent the thick end of three decades dragging his political opponents into fights that ultimately benefit his cause. This is no different.
What would have been a relatively low-key Christmas stunt has been elevated into literal front page news.
Reform UK insiders say that, in turn, is driving more people to the party and pushing up their member count further.
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Part of this is down to news editors grabbing on to any bit of politics that’s around during the quiet period between Christmas and New Year.
Why Badenoch and her team didn’t clock this and hold back will likely bewilder some in her party.
An argument the Tories should have swerved
What’s more, the Tory leader is also currently on the back foot regarding her central accusation that the Reform membership number is fake.
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5:08
From September – Farage: I could become prime minister
The number of active memberships in the account portal matched the figure on the ticker – with their website count growing in size shortly after the NationBuilder tally increased.
Sky News also conducted its own analysis on the ticker and found nothing suspicious as it stands (read the full analysis here).
Kemi Badenoch has said Reform changed the coding when people began to point out the alleged discrepancy, but has yet to provide any evidence to back this up.
Either way, this is still an argument the Tories should probably have swerved.
All politicians need to pick their battles
Yes, signed-up members mean more income for a party, but they don’t necessarily translate into wider electoral success. After all, Labour’s membership surged under Jeremy Corbyn, but he still lost two elections.
But that’s not to say both main parties shouldn’t be looking very closely in their rearview mirror at Reform.
The party’s reaction to this row shows a far more professional behind-the-scenes operation than the previous, more ramshackle incarnations of the Farage-led political machine.
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5:19
Is Reform UK winning the ‘bro vote’?
Talk to long time allies of the Reform leader, and even they sound somewhat surprised by how slick their project has got.
They also point to electoral milestones on the horizon where the party’s results at the ballot box can be objectively tracked – beginning with May’s local elections next year and running through the Welsh Assembly vote in 2026.
There’ll be many more attempts by Nigel Farage to wrestle with his political opponents before then.
The task for the Tory and indeed Labour leaders is to pick their fights and judge how dirty they are prepared to get.
Nigel Farage has threatened to take legal action against Tory leader Kemi Badenoch if she does not apologise for accusing him of publishing a “fake” ticker showing Reform UK’s membership increasing to overtake the Conservatives.
The Reform UK leader has reacted furiously to Ms Badenoch’s assertion that he was “manipulating [his] own supporters” with a ticker that is “coded to tick up automatically” after it showed the insurgent right-wing party had gone past 131,680 members – the number of eligible Conservative Party members in its leadership election in the autumn.
He is demanding an apology from Ms Badenoch for the “accusations of fraud and dishonesty” that he labelled “disgraceful”, and said he is “not going to take it lying down”.
Asked by Sky News in a call with journalists if he is going to sue the Tory leader for libel, Mr Farage said: “I’m going to take some action in the next couple of days. I’ve got to decide exactly what it is, but I’m certainly not going to take it lying down.”
“I think it’s an absolutely outrageous thing for her to have said,” he continued. “I know she’s got a very bad temper. I know she’s well known for lashing out at people, but I am not at all happy, and I’m going to take some action.”
He added that he will confirm within two days exactly what this action will be if she does not apologise for the “intemperate outburst”.
Reform showed Sky News the coding used to link the ticker to the member count within their account on the platform NationBuilder. The demonstration provided strong evidence that the ticker was not automated. Scroll down for the full analysis.
A Tory source told Sky News: “Fake Farage is clearly rattled that his Boxing Day Publicity Stunt is facing serious questions over a fake clock and hundreds of ‘members’ seemingly joining in the middle of the night.
“Like most normal people around the UK, Kemi is enjoying Christmas with her family and looking forward to taking on the challenges of renewing the Conservative Party in the New Year.”
‘It’s a fake’
The row started after Reform UK said on Boxing Day that it officially had more members than the Conservative Party, which Mr Farage, party leader and MP for Clacton-on-Sea, hailed as a “historic moment”, describing his party as “the real opposition”.
Reform UK also shared a video of the membership tracker being projected on to the Conservative Party headquarters in London.
But Conservative leader Kemi Badenoch accused the party of issuing misleading figures: “Manipulating your own supporters at Xmas eh, Nigel?. It’s not real. It’s a fake… [the website has been] coded to tick up automatically.”
Posting on X, she added that the Tories had “gained thousands of new members since the leadership election”.
Reform UK hit back at Ms Badenoch, publishing a screenshot of an online register claiming to show “active memberships”.
Some tickers are indeed “coded to tick up automatically”. This is often done when the data isn’t updated regularly and so, in the meantime, the counter is made to increase at realistic intervals.
Any ticker showing government debt, unemployment or global temperatures, for instance, is almost certainly going up at a regular, pre-programmed rate.
Sky News analysed Reform UK’s ticker to see if this was the case for their membership ticker.
Specifically, we looked at a video posted by Nigel Farage on X, which shows an uninterrupted view of the counter from 4pm on Christmas Day to 2pm on Boxing Day.
The chart above shows the number of new members added every 30 minutes during that 22-hour stretch.
What we can see is that it varies a lot – very few people join overnight, and there is a big surge from around 11am on Boxing Day.
This was around the time that it was first reported Reform UK had acquired more members than the Conservatives, which provided a burst of publicity to the party.
If the ticker was simply increasing automatically, we would expect a much flatter line.
Political parties in the UK aren’t required to reveal their membership numbers, much less provide data that can be independently verified.
However, Reform UK did show Sky News its account on Nation Builder, an independent platform widely used by political parties and campaigns to track and manage their memberships.
Sky News was able to verify that the number of memberships in Reform’s NationBuilder account matched the number presented on their on-site ticker.
The Conservative Party had 131,680 members as of the November leadership contest, while Labour had 366,604 members as of March 2024.
Reform UK chair Zia Yusuf also waded into the row, claiming that people whose memberships of the Tory party had lapsed voted in the autumn leadership election that saw Ms Badenoch elected to the role.
In a call with journalists earlier, he repeated the assertion, and after putting out a call on social media for people to contact him if they had voted in the leadership election but are no longer party members, he said he has received “just so many” that he has not yet been able to verify their claims.
Ms Badenoch and the Conservative Party have been contacted for comment.
Reform UK has said it will submit to an audit of its membership numbers by one of the “big four” accountancy firms if the Tories do the same.
Farage gets personal
Speaking to journalists earlier, Mr Farage was very critical of Ms Badenoch personally, saying her claim that their membership number ticker had been faked “reflects her personality”.
He labelled her “aggressive” and “liable to lashing out”, and said he thinks she wrote her tweet out of a “slight sense of anger”.
“She’s got to fully disprove this, and she’s going to find life a lot more difficult and bitterly regret putting this out on Boxing Day afternoon,” he added.