U.K. inflation held steady at the Bank of England’s 2% target in June, Official National Statistics data showed Wednesday.
The headline reading came in above analyst expectations of 1.9%, according to economists polled by Reuters, and matched the previous 2% reading from May.
Sterling rose slightly following the release, trading at $1.2977 by 7:21 a.m. London time.
Services inflation — closely monitored by the BOE due to its significant role in the U.K. economy and its reflection of domestically-generated price rises — remained at 5.7% in June.
Core inflation, which excludes energy, food, alcohol, and tobacco, stood at 3.5%, consistent with the 3.5% recorded in May.
Higher prices in restaurants and hotels were the largest contributors to upward pressure, while costs for clothing and footwear posted the biggest declines, according to the ONS.
Consumers have been increasing their spending on leisure activities during the summer months, including cultural experiences and concerts, as high-profile artists such as Taylor Swift, Bruce Springsteen, Pink, and Sting tour the country.
