UK annual inflation eased to 2.6% in June 2026, the lowest since March 2025

The UK Office for National Statistics (ONS) said on Wednesday, 22 July 2026, that the country's annual consumer price index (CPI) inflation eased to 2.6% in June 2026, down from 2.8% in May and the lowest reading since March 2025. The slowdown was larger than the 2.7% the market had expected.

The decline was driven mainly by softer transport inflation, especially lower motor fuel prices; the average price of diesel fell by about 10.7 pence per litre between May and June. Food inflation also cooled to 1.7%, its lowest since August 2024. The core CPIH inflation rate held at 2.8%.

The data landed just before the European Central Bank's 23 July rate decision, and the continued easing in prices could give the Bank of England room to lower interest rates gradually in the coming months.