As the news came out yesterday that inflation had dropped again, this time from 5% to 4.8%, forecasts for new measures of quantitative easing (QE) were already being made, as the Bank is likely to have further chances to try and stimulate a sluggish economy in 2012.
Food, transport and clothing prices all slowed in growth in November, leading to the lowest rate of inflation since August, easing pressure slightly on households across the country,
It has now been predicted by the Bank of England that inflation will fall to around 3% in March, before dipping below its target of 2% by the end of 2012. Most economists believe it is likely this fall in inflation will persuade the bank to inject £75 billion into the economy in February, when the current round of QE finishes.
In other economic news, business surveys have suggested that growth has come to a halt in the last three months of 2011, with the economy currently unlikely to be able to generate enough jobs and growth in future quarters.