The inflation rate remains at the Bank of England’s 2% target | Business News

There was no change in the inflation rate, which remained at 2%, the Bank of England’s target rate, according to official data.

This means that prices in June rose in the same proportion as in Mayshowed data from the Office for National Statistics.

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Inflation remained unchanged as hotel prices rose sharply while used car costs fell at a slower pace.

Clothing sales also reduced costs, the ONS said, while raw material costs also fell.

The number is higher than expected. Economists predicted a slight drop to 1.9%.

The absence of a fall will likely be unwelcome news for those responsible for setting interest rates in the bank of england who continued to borrow heavily to reduce inflation to 2%.

A cut in interest rates would be good news for mortgage holders and people paying off other forms of debt, such as loans or credit card bills.

But market expectations are still uncertain regarding the possibility of a cut in August.

The main numbers that possibly influence those responsible at the Bank of England to keep the interest rate unchanged are two other inflation measures – services and core.

The cost of services provided grew 5.7% – the same value as the previous month.

Likewise, underlying inflation – which excludes fuel and food when measuring price increases – remained at 3.5%.

Darren Jones, chief secretary to the Treasury, said: “It is welcome that inflation is on target, but we know that for families across Britain prices remain high.

“We face the legacy of fourteen years of chaos and economic irresponsibility. That is why this government is now taking difficult decisions to lay the foundations so that we can rebuild Britain and improve the situation for all parts of Britain. “