UK Inflation Falls to 2.6% in June, HSBC Signals BoE May Hold Rates

HSBC2.11%
According to HSBC economist Chris Hale, UK inflation fell to 2.6% in June, down from 2.8% in May, with the decline driven primarily by lower fuel prices, particularly diesel. Core inflation remained stable at 2.6%, above consensus expectations. Hale noted that inflation data shows little evidence of indirect energy impacts, suggesting the Bank of England may maintain interest rates unchanged next week and beyond. However, recent weeks' rise in oil and gas prices presents additional upside risks to the inflation outlook.
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