Hopes of August rate cut fall after UK inflation stays at 2%

Taylor Swift effect' on hotel prices partly blamed for UK inflation defying forecast drop

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

The chances of an August interest rate cut have taken a blow after a sharp jump in hotel prices meant progress in the UK's fight against inflation stalled last month.

A near 9% jump in the cost of a hotel room - blamed by some analysts on a Taylor Swift effect" - offset the impact of cut-price clothing to leave the government's preferred measure of the cost of living at its 2% target for a second month in a row in June.