British inflation unexpectedly jumped to an 18-month high in June, according to official data. This increases pressure on the UK government and economy, AFP reported.

The consumer price index rose to 3.6% last month compared with annual inflation of 3.4% in May, as motor fuel and food prices remained high, the Office for National Statistics (ONS) said in a statement.

According to the ONS, June's level is the highest since January 2024, and most analysts had not predicted a change.

The updated inflation figures follow the latest official data showing that the British economy unexpectedly contracted for the second month in a row in May.

This puts even more pressure on Prime Minister Keir Starmer and the UK government, which is facing uncertainty caused by US tariffs.

"Inflation rose in June mainly due to motor fuel prices, which fell only slightly compared with the much larger fall at this time last year," said Richard Hayes, acting chief economist at the ONS.

"Food price inflation rose for the third month and reached its highest annual rate since February 2024," he added.

In response, Finance Minister Rachel Reeves said there was "more to do" to help Britons who were "struggling with the cost of living."

Analysts say that despite rising inflation, the Bank of England may still cut its key interest rate next month as the UK economy struggles to grow.

"The unexpected rise in consumer price inflation may not prevent the Bank of England from cutting interest rates by 25 basis points in August. But it will increase pressure on the Bank to continue cutting rates gradually," explained Ruth Gregory, deputy chief economist for the United Kingdom at research group Capital Economics. | BGNES