Yael Selfin, Chief Economist at KPMG UK commented on today’s inflation figures.
Yael Selfin, Chief Economist at KPMG UK, comments on today’s inflation figures:
“January saw the largest drop in Consumer Price Inflation since 2016, as lower energy prices and sharper discounts on clothing and footwear saw inflation fall well below the Bank of England’s target to 1.8%.
“The latest inflation figures give the Bank of England ample room to wait before it raises interest rates again. In the current climate of heightened uncertainty in regards to the Brexit process, businesses will benefit from a supportive monetary policy.
“Waning UK business investment, and potential short-term financing difficulties for many SMEs in the event of a no-deal Brexit, will require the Bank of England to keep rates low this year, and the latest inflation figures provide the MPC with a mandate to do that.”
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