UK inflation will rapidly fall back to within its target rate of two per cent by as soon as late spring or summer, a Bank of England (BoE) policymaker has predicted.

In foreign currency trading early Tuesday, the pound was valued at 67.14p on the euro from 67.16p and at $1.9617 from $1.9636.

BoE member Danny Branchflower, who sits on the bank's monetary policy committee (MPC), said that falling fuel prices would ensure that inflation would rapidly decline.

Inflation unexpectedly fell back to 2.7 per cent in January after hitting a 15 year high of three per cent in December.

Speaking at Stirling University, Mr Branchflower said that he disagreed with the MPC's majority assessment that inflation would rise back above its target rate within two years.

"My own particular view is that there is a slightly greater margin of spare resources in the economy than embodied in the central projection, reflecting both greater spare capacity within businesses, and a greater degree of slack in the labour market," he said.