"Today’s data is positive for the Bank of England, with both headline and underlying inflation easing. With further progress on disinflation and softer signals from the labour market, a final rate cut is expected at the December meeting.
“Upside risks to the inflation outlook stemming from the upcoming Budget have receded, with growing indications that the Chancellor will look to plug the fiscal gap through higher taxes on households. On balance, we expect these taxes to slow domestic demand, which should support continued downward momentum for inflation over the coming year.
“Headline inflation eased to 3.6% in October, down from 3.8%, driven by lower households energy prices. Although household energy bills rose on a quarterly basis, last quarter’s sharp increase dropped out of the annual comparison, pushing down headline inflation. Looking ahead, inflation is expected to ease gradually over the coming months, with a return to target projected by mid‑2026.”
-ENDS-
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Notes to Editors:
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.