“Falling inflation in October is not an invitation for the Bank of England to cut rates” says Yael Selfin, Chief Economist at KPMG UK.
“Lower inflation in October was largely thanks to changes to the energy price cap and does not signal a change in the direction of the UK economy. Therefore the Bank of England is expected to largely ignore the recent fall when deciding on its policy and save its limited firepower for later.
“An 8.7% fall in gas prices helped push CPI down to 1.5% in October. Other notable falls were recorded in furniture and food, which fell by 2.4% and 0.7% respectively between September and October.”
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About KPMG in the UK
KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 16,300 partners and staff. The UK firm recorded a revenue of £2.338 billion in the year ended 30 September 2018. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 154 countries and has 200,000 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.
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