UK inflation remains unchanged at 2% - holding steady at Bank of England's target rate
17 July 2024, 07:07 | Updated: 17 July 2024, 08:16
UK inflation remained at the Bank of England's target of 2% in June.
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It comes despite some economists' expectations that it would fall further to 1.9%.
Inflation first dropped to the target 2% in the previous month after two years of fighting against increasing prices.
It has not been below 2% since April 2021.
The unchanged rate means inflation is still on the up but at a rate that the Bank of England considers acceptable.
However, it is not likely to be welcomed by economists, as interest rates have been kept high at 5.25% in a bid to bring inflation down further.
It has been predicted that the Monetary Policy Committee, which sets interest rates, will cut them at the next vote at the beginning of August.
Read more: What will be in Keir Starmer's first King's Speech and what does it mean?
Darren Jones, chief secretary to the Treasury, said: "It is welcome that inflation is at target, but we know that for families across Britain prices remain high.
"We face the legacy of 14 years of chaos and economic irresponsibility.
"That is why this government is taking the tough decisions now to fix the foundations so we can rebuild Britain and make every part of Britain better off."
Hotel prices in the year to June while second-hand car costs decreased, the latest figures from the Office of National Statistics revealed.
The changes were offset by a drop in both clothing and footwear prices.
It comes after the International Monetary Fund (IMF) said the UK may need to keep interest rates "higher for even longer" to help with inflation.
The government needs to stick to its commitments to balance the books, the IMF said.
