Inflation stays at 2% – when will interest rates fall?

UK inflation remained unchanged in June after hitting the Bank of England’s target in May. What does it mean for households, interest rates and the economy?

Inflation shopping basket
(Image credit: Craig Hastings via Getty Images)

The annual rate of inflation came in at 2% in June. This marks no slowdown compared to May, when the Consumer Prices Index (CPI) hit the Bank of England’s target for the first time in almost three years.

The largest upward contribution came from restaurants and hotels, according to the Office for National Statistics (ONS), where prices rose by more than a year ago. 

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Katie Williams
Staff Writer

Katie has a background in investment writing and is interested in everything to do with personal finance, politics, and investing. She enjoys translating complex topics into easy-to-understand stories to help people make the most of their money.

Katie believes investing shouldn’t be complicated, and that demystifying it can help normal people improve their lives.

Before joining the MoneyWeek team, Katie worked as an investment writer at Invesco, a global asset management firm. She joined the company as a graduate in 2019. While there, she wrote about the global economy, bond markets, alternative investments and UK equities.

Katie loves writing and studied English at the University of Cambridge. Outside of work, she enjoys going to the theatre, reading novels, travelling and trying new restaurants with friends.