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 labour 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

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 labour 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.