UK inflation peaks at 3.6% in June

Business Jul 16, 2025

UK inflation unexpectedly climbed to 3.6% in June, catching everyone off guard since experts thought it would stay at 3.4%.
The main culprit? Higher transport costs, especially fuel prices, which pushed up the cost of living just as people were hoping things might settle down.

Bank of England's interest rate cuts may be affected

This surprise spike puts the Bank of England in a tricky spot.
They've already cut interest rates four times since last year to help out the job market, but now they have to balance that with keeping prices in check.
Plus, services like restaurants and haircuts are still seeing high price growth at 4.7%, showing that inflation pressures aren't going away just yet.