What was the UK's annual inflation rate in June 2025, and how did it compare to the previous month and economists' forecasts?

The UK's annual inflation rate was 2.6% in June 2025, down from 2.8% in May and below the Reuters poll median forecast of 2.7%. This marked the weakest annual increase since March 2025.

Why did UK inflation slow in June 2025, and what does the Office for National Statistics identify as the main drivers?

UK inflation slowed in June 2025 primarily due to a fall in motor fuel prices—especially diesel—driven by a temporary de-escalation in the Iran war that lowered crude oil prices; the ONS noted this led to the first dip in raw material costs since January and a further slowdown in factory-gate price increases.

UK Inflation Slows in Temporary Boost for New PM Burnham

Jul 21, 2026

UK inflation cooled to 2.6% in June, driven by falling petrol and crude oil prices that reduced raw material costs, though geopolitical tensions persist.

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