The outgoing Governor of the Bank of England today delivered some good news for "the first time since the financial crisis began" in 2007.
The Squeeze could be the title of a horror B-movie but it describes a nasty phenomenon affecting every purse or wallet in the country.
The wartime leader will become the first politician of the modern era to feature on a banknote.
IHS Global Insight economist Howard Archer said commodity price falls have "diluted upside risks". That could mean inflation peaking at about 3% during the summer, he said.
– Howard Archer
Outgoing Governor Sir Mervyn King could actually have a rare parting present of being able to deliver a report that does not contain higher consumer price inflation forecasts or lower GDP (gross domestic product) growth projections.
Indeed, Sir Mervyn may even be able to present a marginal downward revision to the consumer price forecasts although having higher growth forecasts may be pushing his luck.
Outgoing Bank of England Governor Sir Mervyn King could deliver a rare dose of economic optimism by nudging up the UK's growth prospects in his final inflation report today.
Economists believe recent encouraging signs from the economy could see the Bank hold or even lift growth forecasts, while it is also expected to trim its quarterly inflation forecast on the back of recent falls in oil and commodity prices.
Britain eked out growth of 0.3% in the first quarter and a recent trio of positive surveys for April showed improved growth from the service sector, near-stabilisation in construction and improvements in manufacturing.
The quarterly inflation press conference is Sir Mervyn's last before he hands over to new governor Mark Carney in July.
Executive Director, Banking & Chief Cashier Chris Salmon discusses why the Bank chose Winston Churchill.
He said: “The Bank is privileged to be able to celebrate the significant and enduring contribution Sir Winston Churchill made to the United Kingdom, and beyond.”
– Sir Mervyn King, Governor of the Bank of England
Our banknotes acknowledge the life and work of great Britons. Sir Winston Churchill was a truly great British leader, orator and writer. Above that, he remains a hero of the entire free world. His energy, courage, eloquence, wit and public service are an inspiration to us all. I am proud to announce that he will appear on our next banknote.
The Bank of England has announced plans to put Sir Winston Churchill on the next bank note.
Sir Winston will appear on the reverse of the new £5 note which is expected to start printing in 2016.
The note is expected to feature a portrait of Winston Churchill from a photograph taken in Ottawa by Yousuf Karsh in 1941.
A view of Westminster and the Elizabeth Tower from the South Bank looking across Westminster Bridge.
The image of the Elizabeth Tower with the hands of the Great Clock at 3 o’clock – the approximate time on 13 May 1940 when Sir Winston Churchill declared in a speech to the House of Commons: “I have nothing to offer but blood, toil, tears and sweat.” This declaration is quoted beneath the portrait.
A background image of the Nobel Prize medal which he was awarded in 1953 for literature, together with the wording of the prize citation.
The Bank of England has kept interest rates at 0.5 percent today.
The Bank left the scale of its quantitative easing programme to boost the money supply unchanged at £ 375 billion.