UK inflation is expected to come in at 3.5% on Wednesday - down from 4%.Although forecasts have been wrong consistently for more than a year, in recent months they've not been too far off - and the narrative for some time now has been that inflation would start to fall again come February .A survey of economists by Bloomberg came up with the 3.5% forecast.
'However, this could be a short-lived dip, and prices could take off again. Potentially inflationary pressures ahead include the ongoing fight for talent, higher shipping costs due to Red Sea disruption, and the increase in the minimum wage and business rates.'A drop in the inflation figure could influence how soon we get an interest rate cut - as rates are kept high in order to tame inflation by squeezing the economy.