'Sterling will suffer in the short term': Inflation unchanged at 2.4% in June

Upward pressure from motor fuels

Sterling has fallen on the back of inflation figures released this morning, which show the UK Consumer Price Index (CPI) remained steady at 2.4% in June.

The Office for National Statistics said the rate was unchanged on the previous month at 2.4%, its joint-lowest level in 14 months. Upward pressure on prices came from motor fuels, domestic gas and electricity but this was offset but falling prices for clothing and games, toys and hobbies. Following the announcement, sterling dipped 0.54% against the US dollar to $1.3045, its lowest level in ten months. Video game price falls hold inflation steady at 2.4% in May Investment commentators predict the static figure will mean less chance of a rate rise this summer, but also more pain ...