KPMG comments on today’s inflation figures
“Double-digit inflation and slowing growth heralds stagflation for the UK economy” says Yael Selfin, Chief Economist at KPMG UK.
“Double-digit inflation and slowing growth heralds stagflation for the UK economy”
“Double-digit inflation and slowing growth heralds stagflation for the UK economy” says Yael Selfin, Chief Economist at KPMG UK.
“Rising inflation continues to heap pressure on household finances, with a looming energy price rise in October likely to take the headline measure well over 12 per cent.
“The extent and scale of inflation increases put further pressure on the Bank of England, which may explain the increasing urgency of rate rises by the MPC. Higher base rates, falling consumer confidence, and a weak external environment look certain to push the UK into a period of stagflation, as GDP growth flounders and potentially turns negative.
“The pace of annual CPI inflation reached double digits for the first time in July, with an annual rate of 10.1 per cent. Monthly price increases were led by a 2.3 per cent increase of foods and another 2.9 per cent increase in fuel prices.”
-ENDS
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