United Kingdom: Inflation stable in June at BoE’s target
Consumer prices were flat month-on-month in June, down from May’s 0.3% rise, as higher prices for furniture, household equipment and maintenance were offset by lower prices for clothing and footwear, and recreation and culture.
Inflation was unchanged at 2.0% in June, hitting the Bank of England’s (BoE) target. Core inflation—which excludes food and energy costs—rose from 1.7% to 1.8%.
Contained price pressures mean the Central Bank is under no immediate pressure to hike rates, allowing it to maintain an accommodative monetary stance in the face of domestic political uncertainty and slowing global growth.