KPMG comments on today’s inflation figures

“Inflationary pressures are proving more persistent as an acceleration in core inflation, which excludes the effect of food and energy, helped push the headline rate in February. The Bank of England may therefore choose to raise base rates tomorrow, but this may still be the last increase in this tightening cycle.

“Nevertheless, we still expect to see falls in inflation throughout the rest of the year, and the recent drop in wholesale prices of natural gas could bring the headline rate back to the Bank’s 2% target by early 2024, potentially falling below target later that year.

“In the near term, the extension of the Energy Price Guarantee at its current level of £2,500 per month is to subtract a further 1 percentage point from the headline rate of inflation from April onwards, compared to the level it would have been had it been increased to £3,000 as originally planned.

“Inflation in February rose for the first time since October last year, to 10.4%, driven price rises in foods, clothing and eating out.”

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KPMG LLP, a UK limited liability partnership, operates from 20 offices across the UK with approximately 17,000 partners and staff. The UK firm recorded a revenue of £2.72 billion in the year ended 30 September 2022.  

KPMG is a global organisation of independent professional services firms providing Audit, Legal, Tax and Advisory services. It operates in 143 countries and territories with more than 265,000 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.