UK inflation rises unexpectedly to 3.6% driven by food and fuel prices | Inflation
By: Richard Partington Senior economics correspondent | Published: 2025-07-16 06:01:00 | Source: www.theguardian.com
UK inflation unexpectedly rose in June driven by motor fuel prices and food, according to official figures, underscoring the challenge facing the chancellor, Rachel Reeves.
The Office for National Statistics (ONS) said the consumer prices index rose by 3.6% last month, up from a reading of 3.4% in May. City economists had forecast an unchanged reading.
Richard Heys, the acting chief economist at the ONS, 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.
“Food price inflation has increased for the third consecutive month to its highest annual rate since February of last year. However, it remains well below the peak seen in early 2023.”
The rise comes as Labour faces intense…