CPI inflation stayed in line with the 2.0% target in June – exactly where the Bank of England thought it would be (consensus and CE forecasts 1.9%) – but the composition of inflation remains a problem with services inflation stuck at 5.7%. And only a small part of that may have been due to the temporary effects of Taylor Swift’s concerts. As a result, the chances of an interest rate cut in August have diminished a bit more.
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