Economic Buzz: UK inflation hits 3.6% in June, highest since Jan 2024

UK inflation rose to 3.6% in June 2025, marking the highest level since January 2024 and surpassing expectations. The rise was mainly driven by a 1.7% jump in transport costs, led by higher motor fuel prices and airfares on long-haul and European routes. Food inflation climbed to 4.5%, fueled by price increases in items like cakes and cheddar cheese, while clothing and footwear prices also rebounded. Core inflation accelerated to 3.7% year-on-year. Although services inflation held steady at 4.7%, slight easing was seen in housing and household services. On a monthly basis, the CPI rose 0.3%, indicating ongoing price pressures.

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