UK inflation unexpectedly climbs to 3.6% in June 2025

UK inflation up!

The latest UK inflation figure of 3.6% is a setback for those hoping for a steady decline, especially after May’s 3.4%.

With core inflation and food prices also climbing, it’s a sign that underlying price pressures remain stubborn.

It further complicates the Bank of England’s path towards interest rate cuts and dents optimism for faster economic relief.

Summary

📈 Headline CPI: Increased to 3.6%, up from 3.4% in May 2024

🔍 Core inflation (excluding food, energy, alcohol, and tobacco): Rose to 3.7%, from 3.5%

🛒 Food inflation: Climbed to 4.5%, its highest level in over a year

Motor fuel prices: Were the largest contributor to the monthly rise

📊 Monthly CPI change: Up 0.3%, compared to 0.2% the previous month

This hotter-than-expected reading has sparked debate over the Bank of England’s next move.

While a rate cut in August 2025 is still widely anticipated, the inflation uptick may prompt a more cautious approach thereafter.

U.S. inflation ticks up in June 2025

U.S. inflation

As of June 2025, the U.S. annual inflation rate rose to 2.7%, marking its highest level since February 2025.

This uptick was largely driven by new tariffs imposed by President Trump, which increased costs on goods like furniture, clothing, and appliances.

On a monthly basis, U.S. consumer prices climbed 0.3% from May to June, up from a modest 0.1% increase the previous month.

📊 Core inflation—which excludes food and energy—also edged up to 2.9% year-on-year, with a 0.2% monthly increase, suggesting underlying price pressures are building.

Summary

📈 Headline CPI: rose 2.7% year-over-year

🔍 Core inflation (excluding food and energy) climbed to 2.9% annually

📊 Monthly increases: 0.3% for headline CPI, 0.2% for core inflation

FTSE 100 breaks 9000 barrier in historic rally – hitting new all-time intraday high!

FTSE 100 ascent above 9,000

The FTSE 100 surged past the 9,000-point mark on 15th July 2025, setting a new all-time high and signalling renewed investor confidence in the UK’s economic outlook.

Driven by strong performances in energy, banking, and AI-adjacent tech firms, the benchmark index shattered psychological resistance with broad-based gains.

Much of the momentum came from robust earnings reports and upbeat forecasts from major constituents such as Shell and HSBC.

Analysts also pointed to growing international interest in UK equities, especially as sterling remains relatively stable amid global currency fluctuations.

The breakthrough follows months of resilience in the face of inflationary pressures and geopolitical uncertainty.

Investors appear to be rewarding UK equities as a steady alternative option against the backdrop of U.S. market turmoil – maybe the U.S.is running out of steam?

While traders welcomed the milestone, some caution against irrational exuberance. Crossing 9,000 is significant, but sustainability depends on whether earnings growth can be maintained

Nonetheless, market watchers view the rally as a strong signal of the FTSE 100’s ability to compete globally.

With fresh liquidity and stabilising rates, the index might not just pause at 9,000 — it may soon look to test even higher ground.