UK inflation rises to 3.6% in June

Business Oct 14, 2025

Inflation in the UK has climbed to 3.6% for the year ending June 2025, well above the Bank of England's 2% target.
The main culprits? Steep price hikes in food and fuel.
This latest jump follows a small rise from May's 3.4%, showing that everyday costs are still heading upward.

Interest rates on hold at 4.25%

To keep inflation in check, the Bank of England held interest rates steady at 4.25% in June but indicated that changes might come soon.
Core inflation (which leaves out food and energy) is up too, at 3.7%.
Meanwhile, wages grew by 5% between March and May—outpacing inflation—but unemployment also hit its highest level since mid-2021 at 4.7%.
All these shifts could affect everything from loan rates to job prospects over the next few months.