Deloitte comments on today's ONS inflation figures
17 July 2024
Commenting on today’s ONS inflation figures, Ian Stewart, chief economist at Deloitte, said:
“Headline inflation is in retreat and is running well below rates in the US and the euro area. Much of this decline reflects the effects of high food and energy prices dropping out of the numbers. Stripping those components out, UK core inflation is running at an uncomfortable 3.5%, above rates in the US and the euro area.
“A pick up in UK activity since the start of the year means that the service sector is generating quite high levels of inflation. That suggests the Bank of England has limited scope to cut rates this year.”
-ENDS-
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