Bank of England policymakers expect inflation to fall below 1% over the next six months, according to the latest quarterly Inflation Report.
UK CPI inflation has fallen to its lowest level in five years, undershooting estimates as the impact of falling petrol prices dragged the headline level down near to 1%.
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Japan's economy has shown signs of stagnation and some weakness as households spent less and factory output stayed flat in July.
UK consumer price inflation assumed its downwards trajectory once more in July following a sharp spike the previous month.
The Bank of England won't be pressured into hiking the base rate quickly because inflation is likely to remain relatively low, according to economist David Miles.
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UK consumer price inflation rose by 1.9% in the year to June, up from 1.5% in May, a larger increase than economists had expected.
Bank of England Governor Mark Carney has said the 'new normal' for interest rates in the UK will be around 2.5%, a level he predicted they may reach by 2017.