Inflation could climb closer to 4% - here's what you can do to beat it

Inflation could rise again this week, according to some economists, continuing towards a predicted peak of 4 per cent in September.

Some economists believe the consumer prices index (CPI) measure of inflation may have hit 3.7 per cent in July, though others believe it could have fallen slightly.

The level is almost twice the Bank of England’s target figure of 2 per cent , and is set to limit the amount that interest rates can be cut by in the coming months.

Inflation is still far lower than it was back in 2022, when it peaked at more than 11 per cent. No return to this sort of level is expected in the near future.

In June, CPI sat at 3.6 per cent, and the Bank of England does not expect it to return to its 2 per cent target until 2027.

A note from forecaster Pantheon Macroeconomi