Commenting, Yael Selfin, Head of Macroeconomics at KPMG in the UK, said:
“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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