Responding to official inflation figures, showing that Consumer Price Index (CPI) remained at 2.4% in June, Tej Parikh, Senior Economist at the Institute of Directors, said:

“The unchanged inflation rate offers some reprieve for households at a time when wage growth remains uninspiring.

“Despite higher utility bills and petrol costs, consumers may have benefitted from offsetting seasonal discounts, particularly on clothing. The good news should however be taken with a pinch of salt. With the recent weak performance in pay packets, and high street bargains only temporary, the cost of living still remains high.

“The stickiness in prices will reduce pressure on the Bank of England to hike interest rates in August. The decision is certainly not set in stone, particularly as wage growth is a key component of inflation, and the recent data shows little promise of a sustained rise in salaries.”