UK inflation rises to 3.6% in June
Business
Inflation in the UK rose to 3.6% in June 2025, climbing higher than the Bank of England's 2% target.
Everyday staples like chocolate, butter, coffee, and meat are getting pricier, making it harder for people to stretch their budgets.
Bank of England holds interest rates steady at 4.25%
To tackle rising prices, the Bank of England has made four interest rate changes since August 2024, keeping rates steady at 4.25% in June.
Governor Andrew Bailey says future rate cuts might be on the table if job market conditions change.
Economists expected a decision at the Bank's meeting on 7 August 2025.
Fuel prices fell only slightly between May and June 2025, compared to a larger drop in the same period in 2024—and the introduction of US tariffs could keep things unpredictable for a while.