THE WEEK AHEAD
Inflation set to fall back into single digits in boost for Bank and government
Inflation is expected to fall back into single digits for the first time in eight months, according to official figures that could mark the start of a sharp decline in the rate of prices growth.
Data from the Office for National Statistics is set to show that headline consumer prices inflation fell back to a 8.4 per cent in April, down from 10.1 per cent in March, according to forecasts from the Bank of England. The Bank and other forecasters expect inflation to fall back significantly in the coming months, as last year’s energy price surge falls out of the annual inflation calculation. The Bank has a target for inflation to reach 2 per cent within the next three years.
A measure of core inflation,