22 July 2026
The Office for National Statistics (ONS) has reported that the Consumer Prices Index (CPI) inflation rate fell to 2.6% in June 2026, down from 2.8% in May 2026.
We keep an eye on CPI because it not only affects the cost of living and business operating rates but can also influence statutory payment rates. Typically, statutory payments are uprated using the September CPI figure, making inflation data an important indicator throughout the year.
The core CPI annual inflation rate, which excludes energy, food, alcohol and tobacco, remained unchanged at 2.6% in June 2026. While inflation continues to move closer to the Bank of England’s 2% target, prices are still rising and conditions remain closely monitored. The policy team will continue to track inflation trends over the coming months and share any developments that may be relevant to pay professionals.
The next CPI update is due to be published by the ONS on 19 August 2026.
Information provided in this news article may be subject to change. Please make note of the date of publication to ensure that you are viewing up to date information.
