LONDON (Reuters) - Bank of America said on Tuesday its British consumer confidence indicator rose two points in July to its highest since March although it remained consistent with a recession.

The bank's monthly survey also found consumer inflation expectations were largely unchanged through July after falling over several months.

Expectations are still high, suggesting risks of further second-round effects, but the Bank of England can take some comfort that the slowing economy may be ameliorating inflation expectations, BofA economist Robert Wood said.

(Writing by William Schomberg, editing by Andy Bruce)