REUTERS/Nigel Roddis
Down, down, down.
The consensus estimate for inflation in December is 0.7%. That's a far cry from the above-average inflation the UK got in the years just after the financial crisis. In September 2011 inflation peaked at 5.2%.
If inflation falls more than 1% above or below the target 2% rate, the governor has to write a letter to the Chancellor to explain why the target was missed.
In this case, it's oil, oil, oil. The collapse of oil prices is driving down fuel prices that make up a significant part of the UK's inflation index.
Unlike the European Central Bank, the Bank of England seems relatively confident in its ability to keep inflation at around 2% over a longer period, and isn't scrambling to act as oil prices drop. At the UK's last inflation report, governor Mark Carney referred to the tumbling oil price as "unambiguously net positive" for the UK.