Fear of persistent inflation? Bank of England should shake it off

Some economists believe the UK leg of Taylor Swift’s Eras tour led to higher prices in June – but the full picture is more complicated

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• Hopes of August rate cut fall as inflation stays at 2%

Inflation is back down to more normal levels. But at the Bank of England, there are concerns that the battle to keep it close to the 2% target set by the previous government has yet to be decisively won.

Official figures from June show the headline measure remained bang on target for a second month in a row, raising hopes that the worst of the inflationary burst after the exit from Covid lockdowns and the Russian invasion of Ukraine has passed.