UK inflation still above Bank of England's target
UK inflation hit 3.6% in June 2025—still much higher than the Bank of England's 2% goal.
Food and fuel prices are mostly to blame, making everyday expenses tougher for a lot of people.
While this is way down from the wild 11.1% peak back in late 2022, it's clear that rising costs are still a big deal for both shoppers and policymakers.
Food and fuel prices are the main culprits
Food prices shot up by 4.5%, thanks to pricier ingredients and energy bills, while fuel prices didn't drop as much as last year.
The Bank of England has already cut interest rates to try and help, especially since unemployment just hit its highest level since mid-2021.
On a brighter note, wages have actually grown faster than inflation lately—but with so many moving parts, it's a tricky time for anyone keeping an eye on their budget or job prospects.