CPI close to topping out
15 August 2017
Commenting on today’s inflation data, Ian Kernohan, Economist at Royal London Asset Management, said:
“CPI remained at 2.6% in July, still above target, but down from its recent peak. The price of fuel was the largest downward contributor, offset by smaller upward contributions from a range of goods and services.
“While there is still some residual impact of sterling devaluation to feed through, with underlying inflationary pressures low, we think that CPI is close to topping out for the immediate future. In their latest Inflation Report, the Bank of England forecast inflation to peak at 3% in the autumn, and will be happy to keep interest rates on hold as a result.”
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