KPMG comments on today’s inflation figures

“Inflation could soon return to target, but risks remain” says Yael Selfin, Chief Economist at KPMG UK.

“The overall outlook for inflation remains broadly positive, however there are several risks which could cause a setback. Oil prices have rallied over the past month which has led to an increase in prices at the pump for consumers. Also, the hike in the National Living Wage could potentially contribute to persistence in services inflation which remains elevated.    

“Today’s data are unlikely to move the needle for the Bank of England. We expect inflation to return to target later this spring, which raises the prospect of interest rate cuts from June onwards. Fewer rate cuts by the Fed are unlikely have a major impact given the more favourable inflation outlook and the ongoing weakness in the UK economy.         

“Headline inflation continued to cool in March, falling to 3.2%, as the rate of food price increases eased further. However, services inflation remained elevated at 6%.”

-Ends-

For media enquiries, please contact:

Gill Carson, Corporate Communications

Mob: +44 (0)7768 635843

Email:   gill.carson@kpmg.co.uk

KPMG Press Office

Tel:  +44 (0) 207 694 8773

Follow us on twitter: @kpmguk

Notes to Editors:  

About KPMG UK

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.