Inflation ticked up in June, according to new figures from the Office for National Statistics (ONS).
Measured by the Consumer Prices Index (CPI), inflation was stronger than expected at 3.6% in the 12 months to June, up from 3.4% in the 12 months to May.
On a monthly basis, CPI rose by 0.3% in June 2025, compared with a rise of 0.1% in June 2024.
Transport, particularly motor fuels, made the largest upward contribution to the change.
Core inflation, meanwhile, which takes out volatile factors like energy, food, alcohol and tobacco to give a clear picture of underlying trends, came in at 3.7% in the 12 months to June, up from 3.5% in the 12 months to May.
Martin Sartorius, principal economist, CBI, said: “June’s stronger-than-expected inflation print will raise concerns that recent price pressures – driven by higher household energy prices and the passthrough of increased employment costs – could potentially re-entrench inflation in the economy.
“While we still expect the Bank of England’s Monetary Policy Committee to continue gradually cutting rates, today’s upside inflation surprise means its August decision will be finely balanced. Underlying price pressures show signs of easing as the labour market cools, which should support a rate cut. However, some members of the MPC will be wary of loosening too quickly and, consequently, risk inflation remaining above target for longer.”
