The annual inflation rate in the UK eased to 2.6% in June 2026 from 2.8% in May, slowing more than the expected decline to 2.7%.
This marked the lowest reading since March 2025, driven by moderating transport inflation (5.7% vs. 6.8% in May), with the largest downward contribution coming from motor fuels, particularly diesel.
The average price of diesel fell by 10.7 pence per litre between May and June.
Food inflation also cooled to 1.7%, the lowest since August 2024, from 2.2%, with the main downward contributions coming from sugar, jam, syrups, chocolate, and confectionery.
On a monthly basis, consumer prices rose 0.1%, in line with forecasts, following a 0.2% increase in May.