UK consumer price inflation rate hotter than expected at 3.6% in June

UK consumer price inflation was more robust than expected last month, numbers on Wednesday showed, hitting the loftiest rate in a year-and-a-half.

According to the Office for National Statistics, the UK annual consumer price inflation rate accelerated to 3.6% in June, from 3.4% in May.

According to FXStreet cited consensus, it had been expected to remain at 3.4% in June.

The June reading represented the loftiest inflation rate since January 2024.

Consumer prices rose 0.3% in June from May. They had risen 0.2% in May from April.

Costs for the transport, particularly motor fuels, made the largest upward revision to the annual inflation rate, the ONS said.

Core consumer prices, excluding energy, food, alcohol, and tobacco, rose 3.7% annually in June, topping the FXStreet cited consensus which had pencilled in another 3.5% hike, which would have matched the May increase.

The annual service price inflation rate was unchanged at 4.7% in June, the ONS said.

The pound bought $1.3406 after the data, back above the $1.34 mark, from $1.3398 shortly before the reading.

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