London. Britain’s annual consumer price inflation rose to 3.6 percent in June 2025, the highest rate since January 2024. According to data released by the National Statistical Office (ONS) on Wednesday, inflation has increased from 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. Prices of food and non-alcoholic beverages rose 4.5 per cent from a year ago, the highest rate since February 2024.

Inflation, calculated excluding energy, food, alcohol and cigarettes, stood at 3.7 per cent in June, compared to 3 per cent in May. Higher than 5 percent.

According to data published earlier by the ONS, the UK’s real monthly GROSS domestic product (GDP) fell 0.1 percent in May.

The Bank of England had kept its policy interest rate unchanged at 4.25 per cent in June. This decision has been taken due to permanent inflationary pressures and global uncertainty. However, interest rates are expected to be cut in August.

Inflation is still above the bank’s target of 2 per cent. Market analysts see interest rates likely to be cut at least twice by 2025, with policy interest rates expected to fall to around 3.75 per cent by the end of the year.