UK inflation slows to 2.6% in June, easing pressure on Bank of England

Consumer prices rose just 0.1% month-on-month, driven by lower fuel costs. The print supports the case for continued monetary easing as the rate path remains in focus.

By Handelsavisen Newsroom · Automated 2026-07-22 06:10 UTC · 1 min read

UK consumer price inflation decelerated to 2.6% in the year to June, down from 2.8% in May, according to data from the Office for National Statistics.

The annual rate fell below market expectations, marking a further step toward the Bank of England’s 2% target.

1% in June. The moderation in headline inflation was primarily supported by a drop in fuel prices, which helped offset persistent pressures in other sectors.

On a monthly basis, consumer prices increased by just 0.1% in June.

The moderation in headline inflation was primarily supported by a drop in fuel prices, which helped offset persistent pressures in other sectors.

This marks the second consecutive month of slower-than-anticipated inflation, following a decline to 2.8% in April that had already surprised analysts.

The softer print reduces the risk of a policy tightening bias and reinforces the narrative that the Bank of England has room to continue cutting interest rates.