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.