Inflation rate jumps to 3.6%

16 Jul 2025

Data published by the Office for National Statistics (ONS) has revealed that the UK inflation rate unexpectedly jumped to 3.6% in the year to June.

This increase represents a steep rise in inflation, with the Bank of England stating that inflation could peak at 3.7% between July and September. The current rate of inflation is considerably higher than the Bank's target of 2%.

The rise in inflation was driven by higher prices for petrol and diesel and was offset by slower house prices, the ONS found.

Commenting on the latest inflation figures, Chancellor Rachel Reeves said: 'I know working people are still struggling with the cost of living. We have already taken action by increasing the National Minimum Wage (NMW) for three million workers, rolling out free breakfast clubs in every primary school and extending the £3 bus far cap.

'There is more to do and I'm determined we deliver on our Plan for Change to put more money into people's pockets.'