AI Data Insight
The UK's core CPI monthly growth rate reported at 0.3% in June, unchanged from the previous month, indicating stable short-term price growth. However, driven by "chipflation" pushing up electronic product prices, the annual core inflation rate remained unexpectedly firm at a high of 2.6%, and services inflation only slightly retreated. The market expects this will prompt the Bank of England to maintain a wait-and-see approach, making short-term rate cuts unlikely.