18 Jun 2025Inflation in the UK eased to 3.4% last month, down slightly from April's 3.5%, according to the Office for National Statistics (ONS). According to the ONS, transport costs slowed markedly after rising during Easter pushed in April. However, that was offset by an acceleration in the costs of food, furniture and household goods. David Bharier, Head of Research at the British Chambers of Commerce (BCC) said: 'In the short term, there are some clear headwinds. The recent escalation between Israel and Iran poses a significant risk to global supply chains. 'Any major disruption in the Strait of Hormuz could echo the supply chain shock of 2021, with surging oil and shipping costs. Many smaller businesses will have little capacity to absorb these pressures. 'A path towards further rate cuts will be greatly welcomed by businesses to get borrowing costs down. But other steps are needed to alleviate cost pressures, including a plan to ease the tax burden businesses face, and further reductions in trade friction between both the EU and USA.'