UK Inflation Steady at 2.0%, Exceeding Expectations

Official data showed that British inflation held at 2.0% last month, contrary to economists' expectations of a drop to 1.9%. This marks the first time in nearly three years that inflation has hit the Bank of England's target. The Bank of England is set to decide on interest rates on August 1, with investors predicting a 50% chance of a rate cut.

British inflation remained steady at 2.0% last month, defying expectations, official data revealed on Wednesday.

Economists polled by Reuters had anticipated a slight dip in consumer price inflation to 1.9% for the 12 months leading up to June, down from May's figure of 2.0%. This marks the first instance in almost three years where the inflation rate has aligned with the Bank of England's target.

The Bank of England is scheduled to announce its forthcoming interest rate decision on August 1, with investors gauging a 50% probability of a rate cut, which would be the first since 2020. (Reporting by William Schomberg; Editing by Kate Holton)