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\t\tInflation is expected to be coming to a heel, according to the Bank governor.\t<\/p>\n
Inflation is tipped to fall back to its lowest level for nearly a year in a busy week for UK economic data, with hopes the drop will help accelerate the Bank of England\u2019s rate-cutting cycle.<\/a><\/p>\n Economists are expecting the Office for National Statistics to show a sharp reprieve in the Consumer Price Index \u2013 the headline benchmark for price inflation \u2013 after overshooting estimates in December.<\/a><\/p>\n A Bloomberg poll of City analysts predicted inflation would hit three per cent \u2013 marking the lowest level since March 2025.<\/p>\n It comes after a dramatic surge in December led by food inflation hitting 4.5 per cent, compared to 4.2 per cent in the previous month. The measure is closely watched by Bank of England rate-setters given the cost of groceries can weigh heavily on inflation expectations.\u00a0<\/p>\n The move was driven by sharp increases in the cost of coffee and sugar, which have been the target of \u201csin\u201d taxes.<\/p>\n The price of sugar and confectionery has spiked the most over the past year, leading to food and drink inflation figures at 10.2 per cent.\u00a0It comes after pre-packaged milkshakes and lattes were folded into the government\u2019s new \u2018sugar tax\u2019 as it attempts to tackle obesity in the UK.<\/a><\/p>\n Ellie Henderson, Investec economist<\/a>, said food price growth would likely to have fallen to 4.2 per cent but cautioned food inflation was still a \u201ckey concern\u201d.<\/p>\n \t\t\t\t\tRead more<\/p>\n \t\t\tBosses hold up wage growth expectations amid inflation tensions<\/a><\/p>\n Inflation dip to still leave Bank divided<\/p>\n Whilst inflation is expected to fall, some hawks on the MPC are anticipated to hold their ground.<\/p>\n