U.K. inflation holds steady in June
LONDON–Annual inflation in the U.K. held steady in June, official figures showed Wednesday, as summer-clothing sales offset a rise in gasoline prices.
Consumer prices rose 2.4% on the year, the Office for National Statistics said, keeping annual price-growth in excess of the Bank of England’s 2% target.
The data will likely cement views that the central bank is poised to lift its benchmark interest rate as soon as next month. Officials have said they expect to raise borrowing costs three or more times during the next few years to bring inflation back to their goal.
Figures showed prices charged by companies at the factory gate accelerated in June, gaining 3.1% on year compared with an annual rise of 3% a month earlier, in a sign that inflationary pressures are building. Raw material costs jumped 10.2% on year, the statistics office said.
Write to Jason Douglas at [email protected] and David Hodari at [email protected]
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