UK inflation rate remains unchanged at 2% in June

UK inflation held steady in June as price rises across the country stayed at the Bank of England’s target level for the second month running, according to official figures.

The rate of Consumer Prices Index inflation remained unchanged at 2% in June, the Office for National Statistics (ONS) said.

It means prices are still rising, but at a rate that the central bank is comfortable with.

This follows nearly three years of above-target inflation with households plunged into the cost-of-living crisis by soaring food and energy prices.

June’s rate came in slightly ahead of expectations, as some analysts were predicting it to dip below target to 1.9%.

The latest data showed the costs of package holidays, cinemas, theatres and concerts were rising.

But prices of clothing and footwear fell last month, which helped bring down the overall rate.

Food and drink inflation has also dropped sharply from the highs of recent years, coming in at a rate of 1.5% in June.

At one stage it reached nearly 20%, in March last year, as households faced much higher prices in supermarkets and restaurants.

ONS chief executive Grant Fitzner said: “The inflation rate was unchanged in June. Hotel prices rose strongly, while second-hand car costs fell but by less than this time last year.

“However, these were offset by falling clothing prices, with widespread sales driving down their cost.

“Meanwhile, the cost of both raw materials and goods leaving factories fell on the month, though factory gate prices remain above where they were a year ago.”

June’s official inflation data is the first to be released since the UK welcomed a new Government at the beginning of this month.

Chief Secretary to the Treasury Darren Jones 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.”

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