UK Core Inflation Steady at 2.6% Amid Fuel Price Concerns
Core inflation in the UK remained unchanged at 2.6% in June, according to the Office for National Statistics. This measure excludes volatile categories such as food and energy. Meanwhile, services inflation slightly decreased from 3.7% to 3.6%. The overall Consumer Prices Index fell to 2.6% from 2.8% in May, marking the weakest increase since March 2025. This decline was driven by lower fuel costs and easing food prices, providing some relief to households. However, renewed fighting in the Gulf has led to rising fuel prices, which could make the recent reduction in inflation temporary. Financial Markets Online director James Bentley noted that the Bank of England is likely to maintain its current interest rates, opting to 'watch and wait' for further signs of inflation stabilization. 
