UK inflation fell to 2.6% in June, down from 2.8% in May, its lowest level since March 2025, as falls in food, clothing, fuel and bus travel costs offset rises in computer equipment and air fares.
Food and drink inflation eases
Food inflation stood at 1.6%, down from 2.1% and its lowest since August 2024. A range of groceries recorded a lower rate of inflation in June than in May, according to Consumer Price Index data from the Office for National Statistics (ONS).
Whole milk was 2.4% higher year on year in June, compared with 7.2% in May; chocolate was 4.6% higher, compared with 8.3%; and eggs were 2.9% higher, compared with 4.3%. Coffee, soft drinks, rice, meat and tea also saw inflation ease, while butter, yoghurt and cheese saw larger year-on-year price drops.
Pizzas and quiches swung from a year-on-year increase of 0.7% in May to a drop of 6.7% in June. Margarine and other vegetable fats also swung from positive (3.9%) to negative (-1.9%) inflation.
Fuel and transport costs fall
Petrol and diesel prices fell steadily throughout June, reflecting the temporary ceasefire in the Middle East and lower crude oil costs. Diesel was up 27.4% year on year in June, compared with 34.6% in May. Bus and coach fares averaged 0.2% less than a year earlier, compared with a rise of 3.7% in May.
The start of summer sales led to a fall in clothing prices, with bigger discounts than last year, the ONS said. Men's clothing swung from positive to negative inflation, while children's clothes saw a larger year-on-year drop.
Items where inflation accelerated
Air fares rose 3.1% year on year, up from 0.9% in May, while computer software swung from a fall of 7.1% in May to a rise of 0.1% in June. Pasta, couscous, fish, breakfast cereals, mineral water and fresh fruit all saw higher inflation in June than in May. However, these upward pressures were not enough to offset the combined fall in prices elsewhere.
