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.
The figure is well above the 2.0% target of the Bank of England and says the ONS was driven by petrol and diesel prices, and offset by slower house price rises
There were also upward effects from air fares, rail fares, and maintenance and repair of personal transport equipment.
Commenting on the figures Ben Harrison, Director of the Work Foundation at Lancaster University, a leading think tank for improving working lives in the UK said:
Today’s CPI inflation figures demonstrate the scale of the challenge the Government faces in driving up living standards through this Parliament.
“Inflation has increased to 3.6% on the year and rising food prices will be particularly bad news for low-income workers. Our recent analysis reveals one in six workers are struggling to pay their bills each month and, despite a period of sustained pay increases, only half of workers believe wage increases are keeping up with the cost of living.
“These trends appear to be pushing a record number of people into taking on second jobs – often with precarious pay and uncertain hours – to try to make ends meet.
“After a year in office, it’s vital that the Government doubles down on the factors driving many day-to-day expenses to remain so high – such as a broken housing market, water and energy provision and childcare. Only then will workers feel the benefit of Government promises to raise living standards where it matters most – in their pockets.”
