The Office for National Statistics is expected to release United Kingdom inflation data for April that will show a rise in the rate of inflation.
In March inflation stood at 4.0 per cent, a surprise dip from the 4.4 per cent reported in February. The drop in inflation was attributed to supermarket discounts pushing down food prices, but was nonetheless seen as a blip in an upward trend.
The Bank of England, which is charged to keep inflation below two per cent, said last week that it expected inflation to reach as much as 5.0 per cent before the end of the year.
Rising fuel prices, energy bills and resurgent food prices are all expected to take inflation back up when the figures are released tomorrow.
Capital Economics said in a note, "Overall, we expect the headline inflation rate to rise to 4.4% in April and do not disagree with the MPC's view that it will reach 5% or above later in the year. However, we continue to expect it to fall back more sharply than the Committee expects next year as food/energy/VAT effects fade and the considerable slack in the economy drags core inflation lower."