To tackle inflation, the Bank of England is keeping a close eye on the UK’s tight jobs market, ultra-high energy prices and the crippling cost of food.

These are the three main factors that have sent inflation rocketing over the last 18 months. The question is, has Britain reached a turning point and how quickly will inflation fall?

This week, official figures, to be announced on Wednesday, are expected to show the overall rate of inflation, excluding housing costs, falling to single figures for the first time in seven months. Forecasters expect April’s rate will have dropped by as much as two percentage points from the 10.1% reported in March, reflecting a sharp fall in energy prices and an easing of pressures in the labour market.

The consumer prices index (CPI) measure of inflation is forecast to fall further this year as 12 consecutive interest-rate rises by the central bank take their toll on the disposable incomes of households and businesses.

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