The consumer price index (CPI) rate of inflation for the 12 months to June 2024 remains unchanged at two per cent, according to the Office for National Statistics (ONS).
Experts are citing that the inflation continues to be stuck at the Bank of England's desired inflation target for cutting interest rates.
The Bank's Monetary Policy Committee (MPC) has raised the country's base rate to 5.25 per cent.
Reacting to the news, Darren Jones, chief secretary to the Treasury, said: “It is welcome that inflation is at target, but we know that for families across Britain prices remain high.
“We face the legacy of 14 years of chaos and economic irresponsibility.
“That is why this Government is taking the tough decisions now to fix the foundations so we can rebuild Britain and make every part of Britain better off.”
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The Bank of EnglandPATobias Gruber,, CEO of My Community Finance, outlined why savers should take action before the central bank takes action in the near future.
He explained: “The Bank of England is likely to face pressure to cut interest rates next month as inflation remains stable, so savers would be smart to act now.
“There are still excellent opportunities for fixed-rate savings, with some providers offering interest rates as high as seven to eight per cent. If you don't need immediate access to your money, locking in a competitive fixed rate now can protect you from future base rate cuts.
"Don't assume your bank offers the best interest rates for your savings. The savings landscape has changed significantly over the past decade."
The Bank of England's MPC is next set to meet to discuss a potential cut to interest rates on August 1, 2024.
Rates have been raised and held at 5.25 per cent since August 2023 in order to mitigate the impact of inflation-hiked costs.
According to ONS chief Grant Fitzner said, "widespread sales" were contributing factors to the CPI rate staying at the same level.
Fitzner added: "The inflation rate was unchanged in June. Hotel prices rose strongly, while second-hand car costs fell but by less than this time last year.
“However, these were offset by falling clothing prices, with widespread sales driving down their cost.
“Meanwhile, the cost of both raw materials and goods leaving factories fell on the month, though factory gate prices remain above where they were a year ago.”
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Britons have been forced to contend with record high inflation
GETTYHomeowners and other debt borrowers have been saddled with massive hikes to their monthly repayments due to the Bank's decision-making.
Paresh Raja, the CEO of Market Financial Solutions, said: "Borrowers have had to navigate the inflation storm over the past two years, but the past three months suggest it has been brought under control.
"This is good news for borrowers, and will likely provide prospective buyers with greater confidence in the second half of the year.
"Coupled with the arrival of a new government with a significant majority, there is a welcome sense of stability and calm returning to the property market. Indeed, lower inflation and less economic turbulence could prompt the Bank of England to finally cut the base rate in two weeks' time, which would be another boost for borrowers."
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