UK economy grows more slowly than expected amid cost of living crisis

Soaring living costs weighed on the UK economy in July. Photograph: Andy Rain/EPA

The UK economy grew more slowly than expected in July as worker shortages and soaring costs weighed on activity amid the heightened risk of recession.

The Office for National Statistics said gross domestic product (GDP) rose by 0.2% in July, after a sharp fall of 0.6% in June when the additional bank holiday for the Queen’s platinum jubilee led to a decline in activity.