UK Inflation Rate Rises to 3.6% in June

The United Kingdom’s consumer price index (CPI) has increased to 3.6 percent in June from 3.4 percent in May, according to the UK Office for National Statistics (ONS).

The office said the rise is attributed to higher food and transport prices, particularly motor fuel.

The ONS reported that food and non-alcoholic drink prices increased by 4.5 percent in the year to June, the highest rate since February 2024.

Richard Heys, ONS acting chief economist, said: “Inflation ticked up in June driven mainly by motor fuel prices which fell only slightly, compared with a much larger decrease at this time last year.”

Heys added: “Food price inflation has increased for the third month to its highest annual rate since February 2024.”

The consumer prices index, including owner occupiers’ housing costs (CPIH), rose by 4.1 percent in the 12 months to June, slightly up from 4.0 percent in May.

The ONS noted that the CPIH goods annual rate rose from 2.0% to 2.4%, while the CPIH services annual rate eased slightly from 5.3% to 5.2%.

The agency said: “Transport, particularly motor fuels, made the largest upward contribution to the monthly change in both CPIH and CPI annual rates; housing and household services, particularly owner occupiers’ housing costs, made a large, partially offsetting, downward contribution in CPIH.”

The core CPI, excluding energy, food, alcohol, and tobacco, rose by 3.7% in the 12 months to June 2025, up from 3.5% in the 12 months to May.

The ONS reported that the CPI goods annual rate rose from 2.0% to 2.4%, while the CPI services annual rate remained unchanged at 4.7%.