Consumer price inflation, UK: June 2025

This week the ONS reported that inflation rose in June; standard CPI increased to 3.6% from 3.4% and the Consumer Prices Index including owner occupiers’ housing costs (CPIH) reaching 4.1%, up from 4.0% in May.

Rising food and motor costs drove UK inflation higher than expected. The main upward pressure came from the transport sector, particularly motor fuels which made the largest upward contribution to the monthly change on both CPIH and CPI. Meanwhile, inflation in housing and household services eased, helping to offset some of the overall increase. Core inflation, which excludes food, energy, alcohol and tobacco, also increased, indicating persistent underlying price pressures.

Headline figures

• CPI (excluding owner‑occupiers’ housing) rose by 3.6% (up from 3.4% in May).

• CPIH (including owner‑occupiers’ housing costs) rose by 4.1% year‑on‑year in June 2025 (up from 4.0% in May).

Core inflation (excluding food, energy, alcohol & tobacco)

• Core CPIH: +4.3% (up from 4.2%)

• Core CPI: +3.7% (up from 3.5%)

Goods vs Services (CPIH)

• Goods inflation: +2.4% in June, up from 2.0% in May.

• Services inflation: +5.2%, down from 5.3%.

Sector highlights

• Transport saw the biggest upward pressure, primarily from motor fuels:

  • Prices in the transport division rose overall by 1.7% in the 12 months to June 2025, up from 0.7% in the 12 months to May 

  • Air fares jumped sharply in June-the largest June increase since 2018

• Housing & household services (incl. OOH): inflation eased slightly-OOH up 6.4% (down from 6.7%), which had a moderating effect on CPIH

• Food & non‑alc. beverages: inflation continued to rise-in June it hit 4.5% (its highest since February 2024)

• Clothing & footwear: annual inflation returned to +0.5% (from -0.3%), though prices dropped 0.4% month‑on‑month .

What it all means

• Inflation rose in June, driven by transport‑sector changes-especially fuel and air fares.

• The slowing of housing costs helped to soften CPIH's overall rise.

• Core inflation remains high, signalling persistent domestic price pressures.

• Goods inflation is at its highest in nearly two years, while services inflation cools modestly.

Source: ONS