The annual inflation rate in the UK rose to 3.6% in June 2025, the highest since January 2024, up from 3.4% in May and above expectations that it would remain unchanged. The main upward pressure came from transport prices, which increased by 1.7% (vs 0.7% in May), driven largely by motor fuel costs. Additional upward contributions came from airfares, particularly on long-haul and European routes, as well as rail fares and maintenance and repair of personal transport equipment. Clothing and footwear prices also rose (0.5% vs -0.3%) and food inflation climbed to 4.5%, the highest since February 2024, mainly due to cakes and cheddar cheese. On the other hand, services inflation remained steady at 4.7%, while inflation eased in housing and utilities (7.5% vs 7.7%) and household services (6.7% vs 6.9%). On a monthly basis, the CPI rose by 0.3%, above the 0.2% increase in May. Core inflation also accelerated, with the annual rate reaching 3.7% and the monthly rate hitting 0.4%.