Inflation is set to fall from a high of 3.8 per cent when the latest figures are released on Wednesday.

The consumer prices index (CPI) measure of inflation sat at 3.8 per cent when September’s figures were released last month, but economists expect October’s number will be lower.

The Bank of England (BoE) said it believed inflation had “peaked” when it announced its decision to hold interest rates at 4 per cent earlier this month.

And most economists expect it will now begin to steadily fall.

The reduction would give Chancellor Rachel Reeves a rare bit of good news a week before she delivers her Budget on 26 November .

Forecasters at Pantheon Macroeconomics believe inflation will have fallen to 3.5 per cent when the latest figures are released on Wednesday morning.

Barclays, also

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