High food, fuel prices push UK inflation to 3.6%

The United Kingdom‘s consumer price index (CPI) rose to 3.6 percent in June from 3.4 percent in May.

The UK Office for National Statistics (ONS) attributed the increase to rising food and transport, particularly motor fuel prices.

On a year-on-year basis, ONS said the CPI rose by 0.3 percent in June this year — compared to the 0.1 percent recorded in June 2024.

The agency also said the pace of food and non-alcoholic drink price increased by 4.5 percent in the year to June – the highest rate since February 2024.

The office also said the consumer prices index, including owner occupiers’ housing costs (CPIH), rose by 4.1 percent in the 12 months to June — slightly up from the 4.0 percent in May.

“Core CPIH (CPIH excluding energy, food, alcohol, and tobacco) rose by 4.3% in the 12 months to June 2025, up slightly from 4.2% in the 12 months to May,” ONS said.

“The CPIH goods annual rate rose from 2.0% to 2.4%, while the CPIH services annual rate eased slightly from 5.3% to 5.2%.

“Core CPI (CPI excluding energy, food, alcohol, and tobacco) rose by 3.7% in the 12 months to June 2025, up from 3.5% in the 12 months to May; the CPI goods annual rate rose from 2.0% to 2.4%, while the CPI services annual rate was unchanged at 4.7%.

“Transport, particularly motor fuels, made the largest upward contribution to the monthly change in both CPIH and CPI annual rates; housing and household services, particularly owner occupiers’ housing costs, made a large, partially offsetting, downward contribution in CPIH.”

Commenting on the report, Richard Heys, ONS acting chief economist, said “inflation ticked up in June driven mainly by motor fuel prices which fell only slightly, compared with a much larger decrease at this time last year”.

Heys also said “food price inflation has increased for the third month to its highest annual rate since February 2024”.