UK Consumer Prices (Jun. 2025)

The unexpected rise in CPI inflation from 3.4% in May to a 17-month high of 3.6% in June (consensus & BoE forecast 3.4%, CE 3.3%) may not prevent the Bank of England from cutting interest rates by 25 basis points (bps), from 4.25% to 4.00% in August. But it adds to the pressure on the Bank to continue cutting rates at a gradual pace.

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