Policymakers at the Bank of England said they expect Chancellor Rachel Reeves’ Budget to knock as much as 0.5 percentage points off inflation by next spring.

Clare Lombardelli, deputy governor of the central bank, pointed towards the continued easing of inflation during a session with Parliament’s treasury committee.

She said early analysis by the Bank indicated that measures aimed at household bills will help reduce the official inflation rate by between 0.4 and 0.5 percentage point from the second quarter of 2026.

Last month, the Chancellor revealed plans to reduce household energy bills from April by funding part of the renewables obligation scheme, taking this cost away from consumer bills.

Office for Budget Responsibility (OBR) forecasts also indicated that that budget policies

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