Meanwhile, CPIH also remained the same as in May at 2.8%.

The largest downward contribution to CPI and CPIH was restaurants and hotels the largest downward contribution came from clothing and footwear.

Industry professionals commented on the latest inflation data:

Mark Harris, chief executive at SPF Private Clients:

“Inflation has stayed at the 2% target, demonstrating it is under control and giving the Bank of England a further nudge to start reducing interest rates.

“While expectations of an August rate reduction may have diminished as core and services inflation are rather higher than the target, it’s time for the Bank to be bold and make that first rate cut.

“There is a sense that some buyers and sellers are waiting for a rate reduction before taking action, so a cut next month could really give the housing market a boost.

•   'Pressure is mounting' as BoE maintains bank rate at 5.25%
•   The industry reacts to inflation meeting 2% target
•   Shawbrook research shows political uncertainty top concern for SMEs

Simon Webb, managing director at LiveMore:

“Inflation has held at 2% in June, remaining at the Bank of England's target.

“While many hoped it would have fallen further, this stability offers a sense of predictability for the economy.

“For the housing market, this steady inflation rate means that interest rates are less likely to see sudden increases, which is particularly important for older buyers who often rely on fixed incomes and savings.

“Labour must take hold of this opportunity to address these underlying issues and support economic stability. By focusing on measures that can help keep inflation in check without stifling growth, we can create a more favourable environment for the housing market.

“This is especially crucial for older buyers who may be more sensitive to economic fluctuations and interest rate changes. Ensuring a stable and predictable economic environment will help maintain confidence in the housing market and provide security for older homeowners and buyers.”