Inflation is set to fall back to single digits for the first time in eight months which could mark the start of a sharp decline in the rate of prices growth, The Times has reported.
New data from the Office for National Statistics is due to show that headline consumer prices inflation fell back to 8.4% in April, down from 10.1% in March, according to Bank of England forecasts.
The Bank and other forecasters have suggested that inflation could fall back significantly in the coming months as last year’s energy price surge falls out of the annual inflation calculation.
The Bank of England has a target for inflation to reach 2% within the next three years.
The energy price cap for consumers is expected to be set at £2,054 for July – down from £2,500 currently, according to forecasts from consultancy firm Cornwall Insight, meaning consumer bills could fall by almost £450 per year.
