Fuel costs drive up UK inflation to highest rate since January 2024
The Consumer Prices Index (CPI) rose by 3.6% in the 12 months to June 2025, up from 3.4% in the 12 months to May, according to data published by the Office of National Statistics (ONS).
This June figure was higher than expected, and is the highest recorded by the ONS since January 2024, when the rate was 4.0%. On a monthly basis, CPI rose by 0.3% in June 2025, compared with a rise of 0.1% in June 2024.
The largest contributor to the inflation rate was transport as a result of the cost of motor fuel, influenced partly by crude oil prices due to ongoing geopolitical tensions in the Middle East.
The graph below shows the CPI annual inflation rate over time, with the latest data reflecting the highest annual rate since January 2024.
Despite inflation remaining sticky in large part due to transport costs, the British Retail Consortium (BRC) recently announced an uptick in both food and non-food retail sales.
The BRC said increased sales were in part due to the summer heat, with fans and similar appliances seeing a significant boost along with an uptick in sales related to the start of the holiday season.
Concerns remained over increasing prices, however, with shoppers feeling the pinch and and uncertainty over the rising cost of food in the UK.
