KPMG comments on today’s inflation data

“Today’s data will likely see the Bank of England opt to hold interest rates tomorrow, with headline inflation rising to 2.6%, slightly above the Bank’s most recent projections. Moreover, the backdrop of stubborn services inflation will reinforce the MPC’s cautious approach, limiting the scope of interest rate cuts over the coming year.

Underlying inflationary pressures continue to remain a concern, with core inflation rising to 3.5% in November. The Budget measures have the potential to see services inflation increase over the coming months, particularly if firms choose to pass on costs in the form of higher prices.

Headline inflation is set to remain elevated over the coming months, with higher costs contributing to an increase in prices, particularly in labour intensive sectors. We expect inflation to remain above the 2% target over the next two years.”

-ENDS- 

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KPMG LLP, a UK limited liability partnership, operates from 20 offices across the UK with approximately 18,000 partners and staff. The UK firm recorded a revenue of £2.96 billion in the year ended 30 September 2023.

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 273,000 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.