UK inflation surged to a near 18-month high in June as food prices climbed for the third consecutive month, delivering an unwelcome surprise to households already grappling with cost-of-living pressures.
The Office for National Statistics (ONS) revealed Consumer Prices Index inflation jumped to 3.6% in June, up from 3.4% in May and marking the highest level since January 2024. The increase caught economists off guard, with most forecasting inflation would remain steady at 3.4%.
Food prices drive unexpected surge
Annual food price inflation reached its highest level since February 2024, whilst transport costs also contributed to pushing up the overall cost of living. The ONS said motor fuel prices played a significant role, falling only slightly compared with much larger decreases at the same time last year.
Richard Heys, the ONS acting chief economist, said: "Inflation ticked up in June driven mainly by motor fuel prices which fell only slightly, compared with a much larger decrease at this time last year." He added that food price inflation had increased for the third consecutive month to its highest annual rate since February of last year.
Chancellor acknowledges ongoing struggles
However, Heys noted that food price inflation "remains well below the peak seen in early 2023" when households faced severe cost-of-living pressures. The latest figures will concern policymakers who had hoped inflation was on a steady downward trajectory.
Chancellor Rachel Reeves acknowledged there was "more to do" to help bring inflation down, saying: "I know working people are still struggling with the cost of living." She added: "There is more to do and I'm determined we deliver on our Plan for Change to put more money into people's pockets."
(PA/London) Note: This article has been edited with the help of Artificial Intelligence.
