Figures out this morning have revealed there has been no change in the rate of inflation which remained at 2%, the target rate for the Bank of England.
Food price inflation is now at 1.5% while Goods disinflation is -1.4%, largest fall since 2016
However Inflation for services was much stronger at 5.7%, the Office for National Statistics said, unchanged from May.
These stubborn price pressures in the services sector added to doubts over whether the Bank of England will cut interest rates
The Bank is due to announce its next decision on interest rates on Aug. 1st
Commenting on the figures Rebecca Florisson, Principal Analyst, Work Foundation at Lancaster University said
CPI inflation has met the Bank of England’s target rate of 2% for the second month in a row.However, there is little time to celebrate as the sustained period of double-digit inflation during 2022 and 2023 means that people are still poorer than they were at the start of the last Parliament in 2019.
“And workers are still facing rising prices. Interest rates remain at their highest level for 16 years at 5.25%, leaving many facing a ‘cost of housing’ squeeze. The Bank of England estimate that three million households are set to see their mortgage payments rise in the next two years. Meanwhile private rents continue to soar, with average rents rising by £101 per month.
“Many workers are still facing financial insecurity, including the 1.4 million people who are in privately rented accommodation and in severely insecure work who face insecurity at work and at home.
