Official figures shows that inflation remained unchanged in August and food and drink prices has soared for the fifth consecutive month.
The Office for National Statistics said in August the rate of Consumer Prices Index (CPI) was 3.8%.
Airfares have reduced following a spike in August which helped to offset petrol and diesel prices increasing.
Hotels and restaurants have seen an upward pressure as demand for meal out and overnight stays remained high amid many concerts.
ONS chief economist Grant Fitzner said, “The cost of airfares was the main downward driver this month with prices rising less than a year ago following the large increase in July linked to the timing of the summer holidays.
“This was offset by a rise in prices at the pump and the cost of hotel accommodation falling less than this time last year.
“Food price inflation climbed for the fifth consecutive month, with small increases seen across a range of vegetables, cheese and fish items.”
Chancellor Rachel Reeves said, “I know families are finding it tough and that for many the economy feels stuck.
“That’s why I’m determined to bring costs down and support people who are facing higher bills.”
She said the Government was taking action “to put more money in people’s pockets while we work to build a stronger, more stable economy that rewards hard work”.
shadow chancellor Sir Mel Stride said, “Labour’s decision to tax jobs and ramp up borrowing is pushing up costs and stoking inflation – making everyday essentials more expensive.”
Kris Hamer, director of insight for industry group the British Retail Consortium, said. “Food inflation climbed above 5% in August for the first time in 18 months as rising employment costs and poor harvests drove up retailers’ costs.
“With food inflation now outpacing wages, many families will be struggling with the rising cost of living.”
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