UK inflation surpasses expectations, threatening to delay rate cuts

Posted on July 17, 2025   |  

UK inflation rose to 3.6% in June, up from 3.4% in May, marking an 18-month high.

The increase was driven mainly by higher food prices, which rose for the third consecutive month.

Fuel and transport costs also contributed to the inflation uptick.

Inflation remains well above the Bank of England's 2% target.

Economists suggest the Bank of England may slow its rate-cut pace despite expectations of another cut on August 7.

The central bank has been cutting rates quarterly since last August, bringing rates from 5.25% to 4.25%.