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The pound hit a one-year high against the dollar on Wednesday after UK inflation figures came in slightly above expectations at 2 per cent for June.

The consumer price data was above analysts’ forecasts of 1.9 per cent and prompted traders to reduce their bets that the Bank of England will lower interest rates from their current 16-year high next month.

But the inflation figure, provided by the Office for National Statistics, remained at the BoE’s target level, which it hit in May for the first time in three years.

After the data release, investors put the probability of a quarter-point rate cut next month at about a third, having previously been evenly split.

The pound climbed 0.5 per cent to $1.3031, its strongest level against the dollar in a year.

The Monetary Policy Committee has signalled it is getting closer to lowering rates from their current 5.25 per cent. However such a move would hinge on policymakers being confident that underlying price pressures are fully under control.

A key concern has been stubborn services price growth, which is seen as an important gauge of underlying inflation. The latest figures showed services inflation holding steady at 5.7 per cent in June, ahead of analysts’ expectations for a decline to 5.6 per cent.

“It’s the stability of services inflation at 5.7 per cent that’s the blow,” said Paul Dales at Capital Economics. “As a result, the chances of an interest rate cut in August have diminished a bit more.”

Wednesday’s data marked the final inflation release before the MPC’s August 1 meeting, at which it will announce its latest rate decision.

The higher than expected inflation figure came hours before the King’s Speech, which will lay out the new Labour government’s plans to “take the brakes off Britain” in a bid to spur economic growth.

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

“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,” he added.

Restaurants and hotels were the biggest drivers of inflation in the year to June. Core inflation, which strips out energy and food, was 3.5 per cent, the same rate as in May and in line with analysts’ forecasts.

The BoE described its June decision to hold rates at 5.25 per cent as “finely balanced”, with two of the nine MPC members advocating to reduce rates.

Some other members have since signalled they are on the cusp of backing a rate cut, though the latest economic data may complicate their decision.

Huw Pill, the BoE’s chief economist, said this week that the central bank had made “substantial progress” in its efforts to bring price pressures down, but added that recent indicators had still pointed to “some upside risk”.

The MPC will also look at UK labour market data due to be released on Thursday for a further indication of the strength of the economy.

“The continued persistence of wage growth and CPI inflation means the MPC will have to proceed only gradually,” said Rob Wood at Pantheon Macroeconomics, “and the uncertainty about underlying inflation pressure means we expect rate-setters to wait until September for their first reduction.”

HOUSTON — Drawn guns. Thrown rocks. Threatening messages. Houston’s prolonged outages following Hurricane Beryl has some fed-up and frustrated residents taking out their anger on repair workers who are trying to restore power across the city.

The threats and confrontations have prompted police escorts, charges in at least two cases, and pleas from authorities and local officials to leave the linemen alone so they can work.

Beryl knocked out power to nearly 3 million people in Texas — with most of those in the Houston area — after making landfall July 8. The Category 1 storm unleashed heavy rain and winds that uprooted trees and damaged homes and businesses along the Texas Coast and parts of Southeast Texas. State authorities have reported 18 deaths from Beryl. In the Houston area, some have been due to heat exposure following the loss of power, according to the medical examiner’s office in Harris County.

As of Tuesday, crews were still working to restore power to some residents.

“Linemen are our friends and are doing their job. Do not threaten them. I understand you’re angry and mad and frustrated, but let’s get through this together,” Mayor John Whitmire said during a news conference on Monday.

Houston police have investigated at least five cases involving threats made to workers and other employees, whether in person or online.

In one of these cases, police arrested Anthony Leonard, 38, charging him with aggravated assault with a deadly weapon. Authorities allege Leonard on Saturday threw rocks and pointed a gun at a group of CenterPoint Energy workers who were at a staging area.

Leonard remained jailed Tuesday. His attorney did not immediately return a call seeking comment.

CenterPoint CEO Jason Wells said over 100 line workers had to be evacuated from the staging area on Saturday. He said such threats are counterproductive as crews have to be moved to safer areas, delaying their work.

“So many of our fellow Houstonians have addressed this situation with patience and grace. And I want to thank them. But unfortunately, there have been instances where either acts of violence have been threatened or actually committed against our crews that are working this vital restoration. This is unacceptable. The safety of our crews is paramount,” Wells said.

KPRC reported that a charge of making a terroristic threat has been filed against a woman from the Houston suburb of Baytown. The Texas Department of Public Safety alleges the woman made multiple online threats of murder, assault and deadly conduct against employees, including Wells, at CenterPoint’s headquarters in downtown Houston. The woman has not been arrested.

Chief Deputy Mike Lee with the Harris County Sheriff’s Office said his agency has investigated a break-in of a CenterPoint vehicle and three cases where residents refused to let linemen enter their properties.

Ed Allen, business manager for the International Brotherhood of Electrical Workers Local Union No. 66, which represents workers at CenterPoint, said in 42 years in this industry, he’s never seen a response like this where workers are being threatened.

Allen said he spoke to one crew that said while they were working in a suburban Houston neighborhood, several men stood across the street from them and held an assault type rifle in a menacing way.

“It is very disheartening to see the community that I’ve worked in and that I’ve dedicated my life to provide electricity to act the way they have during this event,” Allen said.

Crews on Tuesday told Allen they haven’t received any new threats.

“I hope it’s gotten better out there. Part of that I think has a lot to do with the fact that regardless of what anybody thinks, the restoration effort has gone really well,” Allen said.

As of late Tuesday afternoon, CenterPoint reported that less than 82,000 customers remained without power.

On Tuesday, Gov. Greg Abbott sent a letter to CenterPoint demanding information from the company, including what actions it will take to reduce or eliminate power outages during future storms and how it will improve communication with its customers before, during and after a weather event.

“Texans must be able to rely on their energy providers to keep the power flowing, even during hurricane season. It is your responsibility to properly prepare for these foreseen incidents and work tirelessly to restore power as quickly as possible when it is lost. Anything less is unacceptable,” Abbott wrote.

In a statement, CenterPoint said it’s addressing Abbott’s request and that its work with officials and community leaders to increase the resiliency of the electric grid is essential in “creating and sustaining an environment in Texas where people want to live and build their businesses.”

Harris County Commissioner Adrian Garcia said the threats to CenterPoint workers and out-of-town crews only makes “it harder and longer to get your lights back on.”

“These folks are just here trying to help. Let them do their work and help us and tomorrow will be a better day,” Garcia said.