Inflation due to reach 2% with a fourth month of price growth
Inflation is forecast to come in just shy of the Bank of England's 2% target when official figures are released today.
The Consumer Price Index (CPI) measure of inflation is expected to hit 1.9% in January, as rising food and fuel prices pushes the cost of living beyond 1.6% in December.
The move would see CPI reach its highest level since June 2014 and mark its fourth consecutive month of price growth.
However, Alan Clarke, head of European fixed income strategy at Scotiabank, said a jump in petrol prices could be enough to push CPI to 2% in January.
Data released by the RAC at the beginning of February showed fuel prices reached a two-year high last month, with petrol and diesel increasing by an average of 2p a litre at the pumps.
Ballooning import prices triggered by the Brexit-hit pound are also expected to bump up prices as companies pass on their soaring costs to consumers. Inflation last reached 2% in December 2013.