UK inflation increased in June, driven by motor fuel and food prices, with the consumer prices index rising to 3.6% from 3.4% in May. City economists had not predicted this change. Richard Heys from the ONS stated that motor fuel prices dropped only slightly compared to a larger decrease last year. Food price inflation reached its highest annual rate since February. The Bank of England faces complications in setting interest rates due to rising water, energy, and council tax costs, amid Labour's economic scrutiny following negative growth and tax rise speculation.
The consumer prices index rose by 3.6% last month, up from a reading of 3.4% in May. City economists had forecast an unchanged reading.
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.
Food price inflation has increased for the third consecutive month to its highest annual rate since February of last year, yet it remains well below the peak seen in early 2023.
Average petrol prices fell by 0.5p a litre between May and June 2025, compared with a larger fall of 3p between the same two months a year earlier.
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