U.K. inflation is more likely to fall by early next year to "quite close" to 2 percent, Bank of England policymaker David Miles said in an interview with the Belfast Telegraph newspaper.
Inflation will hover around a level just below 3 percent during much of 2013, he said.
Miles expects the period of substantial squeeze on household incomes to end, the interview published on Tuesday revealed. Britons real wage growth has been lagging behind inflation over recent years, restraining spending.
"One of the reasons why we might be what you might call guardedly optimistic about the future would be that I think this period of substantial squeeze on people's disposable income is likely to be largely behind us," he said.
Over the last few months, Miles has voted to increase quantitative easing by GBP 25 billion to GBP 400 billion. But majority of policymakers fear that further easing might exacerbate inflation expectations and prompt renewed weakness in the pound.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.