The Office of National Statistics is predicted to show that CPI increased to 4.2% in January, as rising food and oil prices, along with the increase in VAT, took hold, according to reports.
RPI is expected to rise from 4.8% to 5%.
The revelation, which will be announced by the Bank in its quarterly inflation report, will force Governor Mervyn King to write his fifth consecutive letter of explanation to the Chancellor and his tenth since April 2007.
As a result, it is expected that the Bank of England will revise its inflation forecast once more, with economists predicting that CPI could rise to as much as 5%.
With inflation threatening the country’s growth prospects, the Bank’s growth forecast is also expected to fall from 2.6% to 2%.
In addition, the base rate could also increase far sooner than previously expected, with predictions that the Monetary Policy Committee will increase interest rates in May or possibly even sooner.
