KPMG comments on today’s inflation figures

“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.”

-Ends-

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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.

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