Based on data from the Office for National Statistics, it indicates that prices increased in June at the same rate as they did in May.
While the cost of used cars decreased more slowly, hotel prices increased significantly, leaving inflation steady.
The ONS reported that while raw material costs decreased, clothing sales also contributed to cost reductions.
The absence of a decline is probably bad news for the Bank of England’s interest rate decision-makers, who have maintained high borrowing levels in an effort to lower inflation to 2%.
A decrease in interest rates would benefit those who have mortgages and are repaying them.
However, the market currently expects that when Bank officials gather again to discuss rates in August, there won’t be a cut.
Based on data from the London Stock Exchange Group (LSEG), markets priced in a 53% chance of no rate cut prior to the inflation statement. The likelihood of a cut increased to 65%.
Key numbers, services, and core inflation indices may persuade Bank of England authorities to maintain the current interest rate.
