Inflation will continue to fall throughout this year, helping to alleviate the squeeze on household incomes, Bank of England chief economist Spencer Dale was quoted as saying.
Consumer price inflation fell to 3.6 percent in January and the Bank has already forecast it will fall below its 2 percent target by the end of the year, then remain around that level for the foreseeable future.
I hope that by the late spring, early summer this year we should be in the low 3's and hopefully inflation will gradually come back down over the rest of the year towards our inflation target of 2 percent, Dale said in an interview with BBC Radio Gloucestershire, broadcast last week.
The Bank of England said that a version of this quote reported in local newspaper The Citizen was incorrect.
Dale said there were a number of factors pulling down on the economy.
I think some of the key things we've seen which have been dragging down on growth over the last few years have been particularly these high rates of inflation which have squeezed households' incomes ... and the extent to which banks have not been able to lend so easily to both households and companies, Dale said.
Those headwinds are some of the key factors which have been pushing down on growth recently. But as I said ... as inflation falls, that downward pressure should hopefully ease.
The Bank's Monetary Policy Committee voted to inject 50 billion pounds of stimulus into the economy in February, but most economists reckon it will not expand its quantitative easing programme when the current round of asset purchases is completed in May.
The central bank is expected to leave interest rates at their record low 0.5 percent at its policy meeting this week.
(Reporting by Fiona Shaikh; Editing by Toby Chopra)