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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April 24, 2026 15:15 ET Economics news flow was relatively light this week even as the conflict in the Middle East continued, raising concerns for policymakers. In the U.S., spending data, initial jobless claims and pending home sales were the highlights. Business confidence in the biggest euro area economy was in focus in Europe. Inflation data from Japan gained attention in Asia.