Inflation slowed by more than expected in the latest reading on Wednesday (22 July) – but experts don’t think that interest rates will follow this year.
The consumer prices index (CPI) measure of inflation hit 2.6 per cent in the year to June, down from 2.8 per cent a month earlier.
Most economists had expected a fall to around 2.7 per cent.
But experts expect the figure to pick up from next month – once July’s energy price rises are factored in to the equation.
And as a result they say cuts to the Bank of England base rate in 2026 are likely off the table.
