“Today’s figures show that Consumer Price Inflation rose slightly in July to 0.6%. But the figures show little evidence that businesses have started passing on the higher costs of imports due to the falling pound. The hotel industry is the only exception as a strong tourism season, helped by the low pound, has given confidence to hoteliers to raise room rates.
“With the pound likely to remain around current levels for some time, biting into companies’ margins, our clients are looking to see how much and when the extra costs can be passed on to customers. We expect inflation to rise further in coming months as they reassess their pricing strategy.”
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KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 12,000 partners and staff. The UK firm recorded a revenue of £1.96 billion in the year ended September 2015. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 155 countries and has 174,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.