PwC comments on the latest 2024 CPI figures

Commenting on the Office of National Statistics Consumer Price Index for August 2024,

Jake Finney, Economist at PwC, comments:

“Headline CPI inflation remained flat at 2.2% in August, in line with consensus expectations. This implies that the UK inflation outlook is stabilising following the turmoil of the past few years.

“The main area of concern continues to be services inflation, which increased from 5.2% to 5.6%. The Taylor Swift effect might not explain the whole story this time, as most of the inflation data for this month was collected on or around the 13 August, which does not coincide with any of the Eras tour dates. However, it could help to explain part of the upward rise in ‘Cinemas, theatres and concerts’ price inflation, which more than doubled, from 4.4% to 9.2%.

“The latest commentary from the Bank of England suggests that a September rate cut is unlikely. However, we expect that the latest inflation data will do little to dissuade the Bank from cutting in November, given that headline and services inflation are both tracking lower than their latest externally published forecasts.”