KPMG comments on today’s inflation figures

Falling inflation could signal a pivot for monetary policy” says Yael Selfin, Chief Economist at KPMG UK.

Falling inflation could signal a pivot for monetary policy” says Yael Selfin.

“Headline inflation fell for a second month in a row after a peak of 11.1% in October which was caused by the rise in domestic energy bills. We expect inflation to continue falling throughout this year, reaching the Bank of England’s 2% target by mid-2024.

“Falling inflation will also come as a relief to Bank of England’s policymakers who may see this as an opportunity to slow the pace of further rate rises. With the effects of past rate rises still passing through the UK economy, we could see the base interest rate peak at 4% in the first quarter of the year.  

“Overall inflation edged down to 10.5% in December, driven by falling road fuel prices and consumer discretionary goods and services, while both the price of food and food services remained elevated.”


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Notes to Editors:  

About KPMG

KPMG LLP, a UK limited liability partnership, operates from 20 offices across the UK with approximately 15,300 partners and staff. The UK firm recorded a revenue of £2.43 billion in the year ended 30 September 2021.

KPMG is a global organisation of independent professional services firms providing Audit, Legal, Tax and Advisory services. It operates in 145 countries and territories with more than 236,000 partners and employees working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients.

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