Yael Selfin, Chief Economist at KPMG UK, comments on today’s inflation data
“The rate of consumer price inflation was unchanged in October from a month ago at 2.4%, slightly below expectations. Strong increases in education, communication and recreation prices were offset by falling food and beverages costs, as well as lower clothing and footwear prices.
“Spirits and beer saw their price fall by 1.4% and 3.1% respectively, which together with the freeze on their duties announced in the budget last month, will no doubt help fuel Christmas celebrations.
“Today’s data will provide some comfort for the MPC in regards to domestic inflationary pressures. Increases in household energy bills, which rose by 2.2% from September, have not been sufficient to push the headline rate of inflation further away from the Bank’s target, and it does not appear that inflationary pressures are sufficiently strong to require a more hawkish course of action.”
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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 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.