UK inflation exceeds expectations, reaching 3.6% in June

UK inflation unexpectedly rose in June to 3.6% year-on-year, up from 3.4% in May. This reading was higher than analysts' expectations of 3.4%.

According to data released by the Office for National Statistics on Wednesday, core inflation—which excludes volatile prices such as energy and food—rose to 3.7% year-on-year, up from 3.5% in May and compared to expectations of unchanged.

Richard Hayes, chief economist at the Office for National Statistics, commented on the data: "Food price inflation rose for the third consecutive month, reaching its highest annual rate since February last year, but it remains well below the peak reached in early 2023."

This comes at a time when the Labour government is under intense scrutiny over its management of the country, following two consecutive months of economic contraction and amid growing speculation about possible tax increases