Cardiff hotels, particularly due to surge pricing for events like concerts, have been blamed for a recent unexpected increase in UK inflation. The Bank of England has cut interest rates for the first time since the pandemic, with inflation expected to rise above 2% in July. Analysts note that service prices, especially in sectors like air travel and hotels, are driving inflation upwards. This follows a spike in hotel prices, partly due to increased demand for stays around events such as concerts by Taylor Swift and Pink. The Bank of England warns of inflation rising further due to high prices in the service sector. Additionally, the economy is predicted to show signs of recovery from recession, but with a slowing job market and decreasing wage growth.