Inflation could fall to 1% by the end of the year, a leading economist has claimed.
Samuel Tombs, UK economist at Capital Economics, said producer price indicators, the strength of the pound making imports cheaper, and political pressure on energy bills were likely to see inflation ease further for the rest of the year.
"Against this low inflation backdrop, we believe the MPC is likely to tread cautiously and raise interest rates only very gradually over the coming years," he said.
More top news
A former Germany international goalkeeper claims he has been offered a contract to become a wrestler with World Wrestling Entertainment.
George, a ten-year-old goldfish, was given a life-saving operation after developing a tumour. His hospital says it went "swimmingly".
A Belgian man convicted of murder and rape will be allowed to let doctors end his life following a controversial ruling.