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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