The Bank of England forecast in November that headline CPI would drop to around 5% by the end of 2023 as energy prices stabilised, but policymakers have warned of ongoing upward pressure on inflation from a tight job market and other factors. Financial markets expect the BoE to raise its main interest rate to 4% from 3.5% on Feb. 2, when it will also publish a quarterly update to its growth and inflation forecasts.
