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:
“Consumer Price Inflation was unchanged in May at 2.4% after significant moderation in earlier months of this year. This is likely to be a new pattern for the remainder of this year, with CPI inflation unlikely to move further towards the Bank of England’s 2% target until sometime next year according to KPMG’s forecasts.
“While pressure from higher earnings so far remains contained despite the tight labour market, higher oil prices and the rise in the price of some commodities are largely to blame. However, weak productivity and dwindling spare capacity could put more pressure on prices in future months.
“The Bank of England is in a pickle. With rising domestic inflationary pressures on the horizon against uneven economic growth performance, it may need to bite the bullet and raise rates in November.”
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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.