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Inflation remained at 2.4% for the third month in a row in June, according to the Office for National Statistics, after clothing prices fell.

The Consumer Price Index (CPI) measure of inflation had been expected to rise to 2.6% last month.

However, the summer sales weighed on inflation after clothing prices were cut, in particular on men's fashion.

The unchanged figure means that wages remain above inflation despite pay growth slowing to 2.7%.

There had been expectations that the Bank of England would raise the interest rate in August.

But Ben Brettell, Senior Economist, Hargreaves Lansdown, stated that following the inflation figures it is not "a done deal".

He said: "Markets had been pricing in around an 80% chance the bank would lift borrowing costs in August, but today's inflation data combined with yesterday's lacklustre wage growth figures could force policymakers into a rethink.

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