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Britain's annual consumer price inflation rate reached 3.6 percent in June 2025, the highest rate since January 2024.
According to the details released by the Office for National Statistics (ONS) on Wednesday, the inflation rate has increased compared to 3.4 percent in May.
The main reason for this increase is the significant increase in motor fuel, air and rail fares and food prices. The prices of food and non-alcoholic beverages have increased by 4.5 percent compared to a year ago, which is the highest rate since February 2024.
The inflation rate, which excludes energy, food, alcohol and cigarettes, was 3.7 percent in June, higher than 3.5 percent in May.
According to data previously published by the ONS, Britain's real monthly gross domestic product (GDP) fell by 0.1 percent in May.
The Bank of England kept its policy interest rate unchanged at 4.25 percent in June. This decision was taken due to persistent inflationary pressures and global uncertainty. However, it is expected that the interest rate will be cut in the coming month of August.
The inflation rate is still above the bank's target of two percent. Market analysts have seen the possibility of at least two reductions in the interest rate within 2025, according to which it is estimated that the policy interest rate may drop to around 3.75 percent by the end of the year.
