Rising food and transport prices pushed up CPI inflation unexpectedly in June to 3.6%, from 3.4% in May.

The Consumer Prices Index (CPI) rose 3.6% in the 12 months to June, up from 3.4% in the 12 months to May, ONS said today. 

CPI inflation had eased slightly in May to 3.4% from 3.5% in April.

The CPI annual inflation rate is the highest since January 2024 when the rate was 4%.

The figures will be a disappointment to the government and the Bank of England which have strived to keep inflation down. The Bank of England’s long term target for CPI remains at 2%.

The sister Consumer Prices Index including owner occupiers’ housing costs (CPIH) rose by 4.1% in the 12 months to June 2025, up from 4.0% in the 12 months to May. On a monthly basis, CPIH rose by 0.3% in June 2025, compared with a rise of 0.2% in June 2024. 

ONS said that transport, particularly motor fuels, formed the largest upward pressure to the monthly change in both CPIH and CPI annual rates. Rising food prices had also been a factor.

RPI, the older measure of inflation, increased from 4.3% in May to 4.4% in June.

Housing and household services, particularly owner occupiers' housing costs, made a large downward contribution to CPIH inflation, partially offsetting rising elements, ONS said. 

Core CPIH (CPIH excluding energy, food, alcohol, and tobacco) rose by 4.3% in the 12 months to June, up slightly from 4.2% in the 12 months to May. The CPIH goods annual rate rose from 2.0% to 2.4%, while the CPIH services annual rate eased slightly from 5.3% to 5.2%. 

Core CPI (CPI excluding energy, food, alcohol, and tobacco) rose by 3.7% in the 12 months to June 2025, up from 3.5% in the 12 months to May; the CPI goods annual rate rose from 2.0% to 2.4%, while the CPI services annual rate was unchanged at 4.7%.

ONS acting chief economist Richard Heys 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. 

“Food price inflation has increased for the third consecutive month to its highest annual rate since February of last year. However, it remains well below the peak seen in early 2023.”