UK Inflation Slows to 2.6% in June 2026 as Middle East Ceasefire Eases Energy Costs

Wednesday 22 July 2026 07:31

The UK's annual inflation rate slowed to 2.6% in June 2026, down from 2.8% in May, according to official data released on Wednesday. The deceleration signals an easing of severe price pressures that hit the British economy in recent months, largely driven by a retreat in energy costs following a temporary ceasefire in the Middle East.

Beating Market Expectations

The inflation figure came in lower than the 2.7% consensus forecast among economists polled by Reuters. Fuel and energy price pressures began to subside gradually after a temporary ceasefire between the United States and Iran took effect during the month, cooling global energy markets.

Inflation MetricMay 2026June 2026Reuters ExpectationPrimary Driver

Annual Inflation Rate2.8%2.6%2.7%Easing energy and fuel prices following temporary regional ceasefire.