Commenting on the Office of National Statistics’ April Consumer Price Indices, KPMG Chief Economist, Andrew Smith, said:
“Amidst the gloom, some good news at last. In the face of recent hiccups, confirmation that the inflation rate has resumed its downward trend is extremely welcome – not least to the Monetary Policy Committee which has appeared increasingly stymied by the co-existence of both a weak economy and sticky prices.
“The fall puts inflation back on track to hit the two per cent target sooner than the Bank of England’s forecast of mid-2013 and paves the way for further quantitative easing to support growth.
“But in the meantime households continue to struggle. Real wages are still falling and the headwinds of elevated unemployment, low wage growth and high inflation look set to remain a drag on the economy for some time to come.”
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Notes to editors.
KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with over 11,000 partners and staff. The UK firm recorded a turnover of £1.7 billion in the year ended September 2011. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 152 countries and have 145,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. KPMG International provides no client services.