UK Sees Surge in June Inflation, Outpacing Forecasts

2025-07-16 03:14:57

(MENAFN) The United Kingdom experienced a rise in its annual inflation rate, reaching 3.6% in June, up from 3.4% in May, according to data published Wednesday by the Office for National Statistics (ONS).

Monthly inflation also accelerated, climbing from 0.1% in May to 0.3% in June, surpassing analysts’ expectations of 0.2% for the month.

Market predictions had anticipated a 3.4% annual inflation rate for June, making the actual 3.6% figure notably higher.

Examining year-on-year price changes, the steepest increases were seen in education, which surged 7.5%, followed by housing and household services at 6.7%, and food and non-alcoholic beverages at 6.4%.

The ONS highlighted that the biggest driver behind the monthly inflation increase was transport costs, particularly motor fuels.

Core inflation—which strips out volatile items such as energy, food, alcohol, and tobacco—rose to 3.7% over the 12 months leading to June 2025, up from 3.5% in May.

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