Big-spending Swifties keep inflation at 2%

INFLATION held steady last month thanks to cheaper clothes prices balanced by a surge in hotel costs amid a big summer of events including Taylor Swift's huge tour.

- Anna Wise

Consumer Prices Index inflation remained unchanged at 2% in June, the Office for National Statistics said. It means prices are still rising but at a rate the central bank is comfortable with after nearly three years of above-target inflation.

June's rate came in slightly ahead of expectations, as some analysts were predicting it to dip below target to 1.9%. The latest data showed climbing hotel and restaurant prices were the biggest factors putting pressure on the inflation last month.