Britain's annual rate of consumer price inflation unexpectedly rose to its highest in over a year at 3.6% in June, official figures showed on Wednesday, slightly dampening expectations for further cuts in Bank of England interest rates, BBC reported.

June's reading from the Office for National Statistics took the annual CPI rate to its highest since January 2024, against expectations from economists in a Reuters poll for it to remain unchanged at May's reading of 3.4%.

British inflation has risen steadily since touching a three-year low of 1.7% last September, and in May the BoE forecast it would peak at 3.7% in September - almost twice the central bank's 2% target.

Inflation in Britain is the highest of any major advanced economy and is around one percentage point more than in the United States or the euro zone, according to BBC.