UK inflation fell to the lowest rate in 15 months in June as food and fuel prices dropped, providing an early boost to the cost-of-living-focused government of Prime Minister Andy Burnham.
The rate of Consumer Prices Index (CPI) was 2.6% in June, down from 2.8% in May, according to the Office for National Statistics (ONS). This was the lowest level since March 2025 and came in below the 2.7% rate that most economists had been expecting.
Drivers of the decline
ONS chief economist Grant Fitzner said: “A fall in motor fuel prices, particularly diesel, helped ease inflation in June. Food prices fell this month, driven by products including chocolate, margarine and beef. Clothing prices also fell with the start of summer sales, with bigger discounts than last year.”
Fitzner added: “The cost of raw materials dipped for the first time since January, mainly due to the lower price of crude oil, while the increase in the costs of goods leaving factories slowed again.”
The lower-than-expected CPI rate is set to provide some relief to Prime Minister Burnham, who has made efforts to ease the cost of living a top priority.
