The Consumer Prices Index (CPI) rose by 3.6% in the 12 months to June 2025, up from 3.4% in the 12 months to May, and by 0.3% on a monthly basis, the latest estimations from the Office for National Statistics (ONS) revealed.
It marked the highest figure recorded since January 2024, when the rate was 4%. The ONS said the rise was driven by motor fuel and food costs, the latter of which increased for the third month in a row to 4.5%, the highest figure recorded since February 2024.
Night-Time Industries Association (NTIA) CEO Michael Kill said the spike in inflation was “extremely troubling” for businesses across the hospitality and night-time economy.
Increasingly alarmed
The news comes as Reeves pledged “bold reforms” to address regulations and red tape for businesses, which she said were choking innovation and acting as “a boot on the neck” for many, during a speech delivered at Mansion House yesterday (Tuesday 15 July).
In addition, the Chancellor said she would look to introduce a “new type of targeted support” for consumers looking for financial advice ahead of the new financial year.
Kill continued: “While the Mansion House reforms may create a more agile financial environment, we must ensure such high-level policy changes are felt by the grassroots businesses that form the backbone of our sector.
“We are increasingly alarmed by signals the upcoming economic strategy may once again hinge on a ‘black hole’ narrative, potentially paving the way for further fiscal tightening in the autumn budget.”
Sector-specific relief
The CEO urged the Government to approach the fiscal address with a mindset of “long-term investment, not short-term cuts”.
He added: “After years of disruption and instability, our industry is preparing to step up its calls for targeted support to relieve mounting tax and cost burdens.
“Without meaningful action on tax, energy prices, National Insurance, and business rates, many nightlife venues, bars, and late-night operators, already strained by soaring costs, labour shortages, and reduced consumer spending, risk being pushed beyond breaking point.
“For these businesses, the promise of economic growth will remain hollow unless accompanied by urgent, sector-specific relief.”
