“Today’s data suggests underlying inflationary pressures remain persistent. While services inflation was unchanged in June, the impact of April’s tax increases is likely contributing to a slower pace in the moderation of price pressures. This is unlikely to ease concerns about the potential second-round effects from the tax measures and may reinforce the MPC’s cautious stance ahead of next month’s meeting.
“Food price inflation rose to 4.5% in June, up from 4.4% in May. Food prices are expected to remain elevated in the coming months, partly due to the impact of the warmer weather, which has hampered global crop production. Higher labour costs are also contributing to the rise, as retailers seek to pass some of that on to consumers. As a result, we expect food price inflation to remain above 4% over the coming months.
"Headline inflation increased to 3.6% in June. We expect it to edge upwards over the coming months, peaking at around 4% in the autumn. Core inflation increased to 3.7%, driven by an increase in core goods prices. While services inflation was unchanged at 4.7%.”
-ENDS-
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About KPMG
KPMG LLP, a UK limited liability partnership, operates across the UK with approximately 17,000 partners and staff. The UK firm recorded a revenue of £2.99 billion in the year ended 30 September 2024.
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 275,000 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.