Commenting on today’s release of inflation data, Yael Selfin, Chief Economist at KPMG UK said:
“September’s 0.3% Consumer Price Index (CPI) increase was in line with expectations and in line with the magnitude of rise that we have historically seen at the start of Autumn. However, given earlier rises, it brings annual inflation to 3%, well above the 2% target for the Bank of England (BoE).
“While we expect the annual rate of inflation to rise a little further this year, the majority of inflationary pressures are now behind us. This should see inflation moderating gradually in coming years, helped by an incipient tightening of monetary policy. However, uncertainties around the progress of Brexit negotiations, and the prospects of only limited extra spending announced by the Chancellor in his Budget next month, are likely to give the BoE some breathing space this year with lift off postponed to 2018.”
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Notes to Editors:
KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 13,500 partners and staff. The UK firm recorded a revenue of £2.07 billion in the year ended 30 September 2016. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 152 countries and has 189,000 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.