KPMG comments on today’s inflation figures - Sept 2023

“Inflation figures may not sway the Bank of England away from raising interest rates tomorrow” says Yael Selfin, Chief Economist at KPMG UK.

“Inflation figures may not sway the Bank of England away from raising interest rates.

“Relatively positive developments in the latest data point at hopes that inflation in the UK will see a smoother downwards path in coming months. While inflation remains well above the 2% target, both core and service sector inflation have eased in August.

“However, there are renewed concerns about the price of oil, which has risen by over 25% since June, and potential pressures on global food prices. These could not only slow the disinflation process further but also reverse the decline in inflation expectations, causing further worry for the Bank of England.

“We expect inflation to return to target only by the latter part of 2024, as businesses continue to pass on higher costs in order to rebuild margins. Under these circumstances, it would be surprising to see the Bank of England doing anything other than raising interest rates by 25 basis points tomorrow.”



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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. 

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