Bank of England governor Andrew Bailey forecasts another big drop in inflation, ... trends now
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The Bank of England's governor last night forecast another big drop in inflation after it fell to the lowest level since September 2021.
Slower rises in food prices helped the Consumer Prices Index drop to 3.2 per cent last month from 3.4 per cent in February.
And Andrew Bailey told fellow bankers in Washington that the gauge is likely to see a steep fall when April's figures are published.
'I expect the next month's data will show quite a strong drop because of the impact of changes in energy pricing,' he said during a conference hosted by the Institute of International Finance.
His optimism is certain to increase speculation that Britain could move ahead of the United States by cutting interest rates from the current level of 5.25 per cent sooner rather than later.
And Andrew Bailey (pictured) told fellow bankers in Washington that the gauge is likely to see a steep fall when April's figures are published
His optimism is certain to increase speculation that Britain could move ahead of the United States by cutting interest rates from the current level of 5.25 per cent sooner rather than later. Pictured: The Bank of England
UK inflation is now below the rate in the US for the first time since 2022.
But the latest reading was higher than markets had been expecting, denting hopes of an interest rate cut by the Bank of England this summer.
