UK inflation hits hotter-than-expected 3.6% in June

The U.K.'s annual inflation rate hit a hotter-than-expected 3.6% in June, according to data released by the Office for National Statistics (ONS) on Wednesday.

Economists polled by Reuters had anticipated inflation would reach 3.4% in the twelve months to June, after it hit 3.4% in May.

June core inflation, which excludes more volatile energy, food, alcohol and tobacco prices, rose by an annual 3.7%, up from 3.5% in the twelve months to May.

The British pound rose almost 0.2% against the dollar, to $1.3406, following the data release.

“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,” Richard Heys, acting chief economist at ONS, commented on the data.

“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,” he added.

U.K. Finance Minister Rachel Reeves said the data showed that “working people are still struggling with the cost of living” and said the government had more work to do to help ease the pressure on consumers.