UK inflation held steady in June, remaining at the Bank of England’s target rate of 2%, according to the latest official figures.
Discounts offered during summer sales on clothing helped offset significant price hikes in hotels.
Overall, inflation held steady at 2% for the year ending in June, unchanged from May.
This indicates a continued increase in the cost of living, albeit at a rate deemed acceptable by the central bank, following a prolonged period of inflation above the target, which has strained household finances.
Grant Fitzner, chief economist at the Office for National Statistics (ONS), highlighted a notable increase in discounting across various sectors.
Specifically, clothing and footwear costs declined last month, while the inflation rate for food and drink showed a marked decrease from recent highs.
The data also revealed a slight decrease in second-hand car prices compared to the same period last year. Conversely, prices in restaurants and hotels saw increases, with hotel prices rising sharply by 8.8% from the previous month, and restaurant and cafe prices up by 0.3% on a monthly basis.
Furthermore, costs for package holidays, as well as tickets for cinemas, theatres, and concerts, showed upward trends.
Persistent price increases in services, which encompass a wide range from dining out to hairdressing, continue to pose considerations for Bank of England policymakers regarding potential interest rate adjustments.
Darren Jones, the newly appointed chief secretary to the Treasury, emphasized that households across the UK are still feeling financial pressure despite the stable inflation figures.
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