UK inflation held steady in June as price rises across the county stayed at the Bank of England’s target level for the second month running, according to official figures.

The rate of Consumer Prices Index (CPI) inflation remained unchanged at 2% in June, the Office for National Statistics (ONS) said.

It means that prices are still rising but at a rate that the central bank is comfortable with, after nearly three years of above-target inflation fuelling the cost-of-living crisis.

The latest data showed that prices in restaurants and hotels rose more than a year ago, putting upward pressure on the headline inflation rate.

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But prices of clothing and footwear fell last month, which helped bring down the overall rate.

Services CPI inflation – which looks only at services-related categories like hospitality and culture and is watched closely by the Bank’s interest rate-setters – was unchanged at 5.7% in June.

This could present a problem for the Bank after some economists had been expecting the rate to slow last month.

ONS chief executive Grant Fitzner said: “The inflation rate was unchanged in June. Hotel prices rose strongly, while second-hand car costs fell but by less than this time last year.

“However, these were offset by falling clothing prices, with widespread sales driving down their cost.

“Meanwhile, the cost of both raw materials and goods leaving factories fell on the month, though factory gate prices remain above where they were a year ago.”

Darren Jones, chief secretary to the Treasury, said: “It is welcome that inflation is at target, but we know that for families across Britain prices remain high.

“We face the legacy of 14 years of chaos and economic irresponsibility.

“That is why this Government is taking the tough decisions now to fix the foundations so we can rebuild Britain and make every part of Britain better off.”