Inflation at lowest level since November 2010

This morning’s UK inflation data shows a drop in the main CPI measure to 3.6% in January, from 4.2% in December, ahead of tomorrow’s Bank of England quarterly report.

The drop is in line with the Bank of England’s forecasts and paves the way for more Quantitative Easing in the coming months, which is not good news for sterling.

Tomorrow’s quarterly inflation report is a key news release for inflation, the UK economy at large, and therefore the Pound. Exchange rates for sending currency or receiving payments from abroad are likely to be affected as the report is released at 10.30, with UK unemployment first at 9.30 tomorrow.