UK inflation remains unchanged at 2% - holding steady at Bank of England's target rate

17 July 2024, 07:07 | Updated: 17 July 2024, 08:16

UK inflation remains unchanged
UK inflation remains unchanged. Picture: Alamy/ONS

By Emma Soteriou

UK inflation remained at the Bank of England's target of 2% in June.

Listen to this article

Loading audio...

It comes despite some economists' expectations that it would fall further to 1.9%.

Inflation first dropped to the target 2% in the previous month after two years of fighting against increasing prices.

It has not been below 2% since April 2021.

The unchanged rate means inflation is still on the up but at a rate that the Bank of England considers acceptable.

However, it is not likely to be welcomed by economists, as interest rates have been kept high at 5.25% in a bid to bring inflation down further.

It has been predicted that the Monetary Policy Committee, which sets interest rates, will cut them at the next vote at the beginning of August.

Read more: Rachel Reeves faces calls to launch inheritance tax raid on pension pots in bid to raise extra £2 billion a year

Read more: What will be in Keir Starmer's first King's Speech and what does it mean?

Inflation has remained unchanged
Inflation has remained unchanged. Picture: ONS

Darren Jones, chief secretary to the Treasury, 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."

Hotel prices in the year to June while second-hand car costs decreased, the latest figures from the Office of National Statistics revealed.

The changes were offset by a drop in both clothing and footwear prices.

It comes after the International Monetary Fund (IMF) said the UK may need to keep interest rates "higher for even longer" to help with inflation.

The government needs to stick to its commitments to balance the books, the IMF said.

More Latest News

See more More Latest News

Former health secretary Sir Jeremy Hunt has urged the Government to reconsider cuts to allocated funding for maternity services, after warnings they will be a "wrecking ball" to women's safety.

Planned cuts to maternity services will be ‘wrecking ball’ to women’s safety, former Health Secretary says

Martin Clunes with wife Philippa Braithwaite

Doc Martin star Martin Clunes insists neighbours are not 'travellers' amid bitter planning row

Putin has given a rare glimpse inside his Kremlin home

Putin gives rare glimpse inside his home - as he admits he thinks 'constantly' about who will replace him as president

Cardinal Ruben Salazar Gomez is surrounded by journalists as he arrives at the Vatican for the College of Cardinals' meeting, on May 5, 2025 in Rome, Italy.

Top of the Popes! Cardinals mobbed as they prepare to enter the Sistine Chapel for secret conclave to elect new Pope

Friedrich Merz was voted in at the second attempt

Friedrich Merz elected German chancellor on second attempt after losing initial vote

Local planners have recently granted the Florence + The Machine frontwoman permission to unify four 12th-century properties in Somerset into one plush estate

Florence Welch’s £1.9m home renovation could unearth medieval skeletons

Hannah James was the partner of Shane Richardson

Girlfriend of Superbikes rider who died in horror crash suffers double tragedy as previous boyfriend also killed in motorcycle race nine years ago

Elizabeth Odunsi was murdered just days before graduating as a nurse

Heartbreaking final TikTok of British student nurse stabbed to death just days before graduating from US university

Ms Bahsoon, with 800,000 followers, became a viral hit with TikTok users after sharing dance videos on London’s iconic train lines.

TikTok's 'Tube Girl' removes videos of her new single after breaching TfL rules

Eddie Hall's expletive-laden rant was caught on camera

Moment Eddie 'The Beast' Hall chases drivers who 'scared his children' by sitting outside his home for 25 minutes

Nicola Sturgeon said trans people's lives could become "unliveable" as a result of the Supreme Court ruling when she appeared in Holyrood.

Nicola Sturgeon says trans lives could be 'almost unliveable' after Supreme Court ruling

Manchester United's Portuguese midfielder Bruno Fernandes. The Premier League has backed Tottenham over fixtures

Manchester United lose their Europa League final advantage over Tottenham after Premier League ruling

Michael Redgrave acted as a drug dealer and courier delivering cocaine in the City of London and surrounding areas

Black cab driver admits using his taxi to deal cocaine across London

Jonny Greenwood performs on stage

Radiohead's Jonny Greenwood announces cancellation of UK shows due to 'credible threats'

Undated file photos of Coleen Rooney (left) Rebekah Vardy who are due to find out who has won their High Court libel battle in the 'Wagatha Christie' case.

Rebekah Vardy agrees to finally pay Coleen Rooney eye-watering sum six years after Wagatha Christie saga

Co-op shelves go bare as shoppers left scrambling for goods following 'M&S-style cyber attack'

Co-op shelves lie empty as shoppers scramble for essentials following 'malicious cyber attack'