LONDON, July 16 (Xinhua) -- Britain's annual rate of consumer price inflation rose by 3.6 percent in June, the highest since January 2024, data from the Office for National Statistics (ONS) showed Wednesday.
The reading was up from 3.4 percent in May, according to the ONS. It attributed the increase mainly to prices rises for motor fuels, air and rail fares, as well as food.
Prices of food and non-alcoholic beverages were 4.5 percent higher than a year ago, the highest recorded since February 2024.
The country's core inflation excluding energy, food, alcohol and tobacco rose by 3.7 percent in June, up from 3.5 percent in May. While services price inflation, a key indicator of domestic price pressure, was unchanged at 4.7 percent in June.
Earlier data from the ONS showed Britain's monthly real gross domestic product fell 0.1 percent in May 2025, contracting for the second month in a row after declining 0.3 percent in April.
In mid-June, the Bank of England decided to keep its benchmark interest rate unchanged at 4.25 percent, citing persistent inflation pressures and heightened global uncertainty.
The June inflation remains much above the bank's target rate of 2 percent. But a cut of interest rate is still expected at the bank's meeting in August.
Market analysts expect the bank to deliver at least two more rate cuts in 2025, potentially lowering the base rate to around 3.75 percent by year-end. ■
