KPMG chief economist Yael Selfin said July CPI rose to 2.9% from 2.6% but is
unlikely to prompt the Bank of England to raise rates, as domestic price
pressures are easing and the print is broadly in line with the Bank’s latest
projections. Core inflation continued to slow, with services inflation easing to
3.4% from 3.6%. Given a labor market that is less weak than in 2022 and limited
pass-through from higher energy costs, she expects policy rates to remain on
hold for the remainder of the year.
