Yael Selfin, Chief Economist at KPMG in the UK, comments on today’s inflation figures
Yael Selfin, Chief Economist at KPMG in the UK, comments on today’s inflation figures:
“Higher motor fuel prices saw Consumer Price Inflation (CPI) rise by 0.4% in April on the previous month, following a relatively muted increase in March.
“Prices of goods, including furnishing, household appliances, clothing and footwear, moderated in April. At the same time, the cost of services, including hotels and communication packages, were on the rise. This is partially a reflection of the diminishing impact on import prices from the sharp depreciation of the pound following the EU referendum, and increasing domestic inflationary pressures as the labour market tightens further and spare capacity wanes.
“With oil prices on the up and domestic price pressures unabated, we may not see further falls in inflation this year. This would make it even more pertinent for the Bank of England to resume its gradual increase in interest rates.”
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Notes to Editors:
KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 14,500 partners and staff. The UK firm recorded a revenue of £2.2 billion in the year ended 30 September 2017. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 154 countries and territories and has 200,000 people 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.