According to Official National Statistics data released on Wednesday, U.K. inflation remained stable at the Bank of England’s 2% target in June.
The headline figure of 1.9% surpassed analyst predictions and matched the previous month’s reading of 2% in May. Services inflation, a key indicator for the central bank due to its significant role in the U.K. economy, stayed at 5.7% in June.
Core inflation, which excludes energy, food, alcohol, and tobacco prices, was recorded at 3.5%, consistent with May’s figure.
The primary drivers of upward inflationary pressure were higher prices in the restaurant and hotel sectors, while the greatest decreases were seen in clothing and footwear costs, as reported by the ONS.
This data marks the first inflation report following the U.K.’s general election on July 4, though it does not reflect any governmental changes.
Darren Jones, the new chief secretary to the Treasury, highlighted that prices are still elevated and emphasized the current government’s commitment to rectifying economic challenges from previous administrations.
Jones stated, “We face the legacy of fourteen 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.”
