UK inflation rises unexpectedly to 3.6% driven by food and fuel prices
Guardian3 days
UK Inflation Rises to 3.6% in June
UK Inflation Rises to 3.6% in June
Above: A stallholder takes money from a customer on a stall in Maidstone, U.K., in April 2025. Image copyright: Chris Ratcliffe/Bloomberg/Getty Images
The Spin
Cautious rate cuts and pragmatic government decision-making reflects sound policy in uncertain times. A recent rise in inflation is the result of short-term factors that are expected to peak in September, before a return to the Bank's target rate in the medium-term. The Treasury and the Bank will continue to work together to ensure that the British economy remains stable and secure.
As the Bank of England rushes through interest rate cuts despite inflationary pressure, Reeves's Treasury continues to push prices up with increased borrowing and public spending. As these two institutions fail in their economic policy, it is working people that are left worse off. The Bank and the Chancellor must get a grip immediately or risk a fiscal crisis.
Cautious rate cuts and pragmatic government decision-making reflects sound policy in uncertain times. A recent rise in inflation is the result of short-term factors that are expected to peak in September, before a return to the Bank's target rate in the medium-term. The Treasury and the Bank will continue to work together to ensure that the British economy remains stable and secure.
As the Bank of England rushes through interest rate cuts despite inflationary pressure, Reeves's Treasury continues to push prices up with increased borrowing and public spending. As these two institutions fail in their economic policy, it is working people that are left worse off. The Bank and the Chancellor must get a grip immediately or risk a fiscal crisis.
Metaculus Prediction
There is a 16% chance that the U.K. will achieve an annual GDP growth rate of at least 2.5% over the current parliamentary term, according to the Metaculus prediction community.