INFLATION figures due out tomorrow are expected to show further signs of improvement for the UK's economic recovery. With the cost of living down, consumer prices inflation (CPI) may now be below two per cent.
Jonathan Lones, of Capital Economics said: "CPI inflation looks set to fall below the two per cent target in January for the first time since November 2009. And since the recovery does not seem to be causing price pressures to build, we think that CPI inflation could ease to about one per cent by the end of the year."
The Bank of England's decision last week to remove the link between unemployment and interest rates will be further explained when the minutes are published on Wednesday. The economic week will be rounded out on Friday with public borrowing figures, which follow January's rush of corporation and income tax receipts.
Other Office for National Statistics (ONS) figures out this week include the House Price Index for December, due out tomorrow, labour market statistics for February, due on Wednesday, and retail sales figures for January, out on Friday.
The corporate calendar begins today with full-year results from Fidessa Group and Hammerson and news from BHP Billiton, Gleeson Group, Telecom Plus, Torotrak and TR Property Investment Trust.
Tomorrow AZ Electronic Materials, Brammer, Drax Group, InterContinental Hotels Group, Morgan Sindall Group and John Wood Group are all scheduled to give end-of-year figures while Essar Energy will update the market.
On Wednesday Galliford Try, Knot Offshore Partners, Mucklow, Pan African Resources and Veripos are due to give figures.
On Thursday Anglo Pacific Group, BAE Systems, Centrica, Essentra, Playtech, Primary Health Properties, Rathbone Brothers and Rexam will announce year-end results.
Centrica's results will be closely watched after recent suggestions from energy secretary Ed Davey that British Gas should be broken up. Shares fell on the news.
Centaur Media, Ensco, F&C Global Smaller Companies, Genting Singapore and Kingfisher Group are also scheduled to give updates.
Informa and Millennium & Copthorne Hotels are both due to give final figures on Friday.