Meanwhile, the institution raised the British economic growth forecast from 2.7 percent to 2.9 percent for this year.

　　Peter Spencer, economic advisor to EY ITEM Club said: "We are set for a long period of low inflation as pressures from commodity prices and the labor market, traditionally the two main suspects in the UK inflation drama, remain largely absent."

　　Britain's inflation rate was 1.7 percent in February and the unemployment rate had declined to 7.2 percent, according to the Office for National Statistics of the country.

　　The club also claimed that the wage growth rate increased faster than inflation for the first time in almost six years.

　　With inflation under control and a stronger pound, the forecast predicts that the British central bank will keep interest rates on hold at 0.5 percent until the third quarter of 2015.