KPMG comments on today’s inflation figures

“Taming inflation calls for further monetary policy response” says Yael Selfin, Chief Economist at KPMG UK. 

“Taming inflation calls for further monetary policy response” says Yael Selfin, Chief Econ

“Taming inflation calls for further monetary policy response” says Yael Selfin, Chief Economist at KPMG UK.

“Inflationary pressures are likely to remain elevated, as we are yet to see the full effect of the 18 per cent Sterling depreciation against the US Dollar, the introduction of the Energy Price Guarantee and the effect of the recent hike in oil prices. Looser fiscal policy will add further pressure to the mix.

“We still expect inflation to peak in October this year, but this can only be achieved with more aggressive interest rate moves by the Bank of England, which could see base rates rising to at least 4.5 per cent early next year.

“Overall inflation rose slightly in September to reach 10.1 per cent as a fall in motor fuel prices was offset by price rises in food and clothing and furniture products.”

-ENDS

 

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