EconomyUK inflation cools, but renewed Iran war clouds outlook

UK inflation fell to 2.6% in June, its lowest level since March 2025. The decline gave new Prime Minister Andy Burnham an early boost as he seeks to relieve pressure from the cost of living. Cheaper petrol was the main force behind the slowdown, following a brief de-escalation in the Iran war. The conflict’s revival, however, is casting uncertainty over the economic outlook.