Overview

• Household Costs Index inflation reached 3.9% in the year to June, rising from earlier 2025 readings and underscoring a renewed squeeze on budgets.
• Lowest‑earning households saw costs climb 4.1% between April and June versus 3.8% for the highest earners, reversing the prior pattern.
• Private renters experienced 4.5% household‑cost inflation, compared with about 3.4% for outright owners and roughly 4.0% for mortgaged households.
• ONS linked the heavier burden on poorer households to greater exposure to essentials such as energy, food and rent, with April bill increases intensifying pressures.
• CityAM reported that economists and the Bank of England cite pass‑through from higher employers’ national insurance as a factor, while Treasury officials are weighing wealth‑tax options ahead of the Budget and the opposition accused the government of driving up prices.