July 16, (THEWILL) — The annual inflation rate in the United Kingdom rose to 3.6% in June 2025, marking an increase of 0.2% from the 3.4% recorded in the previous month of May, the UK Office for National Statistics said on Wednesday.
On a monthly basis, the Consumer Price Index (CPI) rose by 0.3%, above the 0.2% increase in May. Core inflation also accelerated, with the annual rate reaching 3.7% and the monthly rate hitting 0.4%.
While the new inflation rate is the highest since January 2024, the main drivers of the upward pressure came from transport prices, which increased by 1.7% (vs 0.7% in May), driven largely by motor fuel costs.
“Additional upward contributions came from airfares, particularly on long-haul and European routes, as well as rail fares and maintenance and repair of personal transport equipment”, the UK statistics office noted.
Clothing and footwear prices also rose (0.5% vs -0.3%), and food inflation climbed to 4.5%, the highest since February 2024, mainly due to cakes and cheddar cheese.
On the other hand, services inflation remained steady at 4.7%, while inflation eased in housing and utilities (7.5% vs 7.7%) and household services (6.7% vs 6.9%).
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