Inflation Will Drop Back Below 2% By End Of The Year Says Bankn

Falling energy costs are expected to end the double-digit rate pushing up prices well beyond wage rises.

- Sam Lister and Steph Spyro

BRITAIN'S cost-of-living crisis is tipped to be over by the end of the year after experts predicted inflation will plummet below two per cent.

Investment banking firm Citigroup forecast that inflation will drop to 2.3 per cent in November and fall to 1.6 per cent the following month.

It would give Jeremy Hunt a much-needed lifeline when it comes to tax and spending decisions ahead of the next election.

But Treasury insiders insist that Chancellor Jeremy Hunt must still make difficult decisions in the Budget next month.

A source said: "Lower inflation means the pound in your pocket goes further.

"We're not out of the woods yet, so we need to stick to the plan to halve inflation this year.

"That means some tough choices on tax and spending in the short-term, but it will work - and it will be worth it." Citigroup had issued the forecast after analysing falling wholesale energy costs.