Read on blog or Reader SMALL BUSINESS INSIGHTS Read on blog or Reader UK inflation hits 3.6% in June, casting doubt on August rate cut By Abimbola Akomolafe on July 17, 2025 Inflation in the United Kingdom rose to 3.6% in June, reaching its highest level in over a year, according to new data from the Office for National Statistics (ONS). This increase was unexpected, as economists had predicted inflation would stay at May's level of 3.4%. The rise may influence the Bank of England's upcoming decision on interest rates. A rate cut had been expected in August, but the higher inflation figure makes that decision less certain. Read also, UK inflation hits 3.6% in June, casting doubt on August rate cut APPLY NOW: Digital Marketer APPLY NOW: Sales Executive APPLY NOW: Product Manager How to break out of a career rut The ONS pointed to higher prices for petrol, air travel, train fares, clothing, and alcoholic drinks as key drivers of the inflation increase. Inflation in the UK has been climbing steadily since hitting a low of 1.7% in September 2023. The Bank of England has forecast that inflation could peak at 3.7% by September—almost double its 2% target. Experts say that although interest rate cuts are still expected later this year, the central bank may hold off in August due to this latest inflation surprise.

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