Inflation in the UK is on course to increase above four percent in the coming months, reducing average household incomes by £700, research suggests. The Resolution Foundation said higher than expected inflation poses more of a challenge to household incomes than to the Bank of England. The think tank said UK inflation has mirrored trends in the United States, when the rate is increasing. It added that near-term inflationary pressures in the UK are less stark than the United States. The Foundation’s analysis showed that while the UK is unlikely to experience the same inflation peaks seen in the United States, if commodity prices remain at their current levels, CPI inflation could rise above four percent later this year, more than double the rate of inflation forecast by the Bank of England for the third quarter. James Smith, research director at the Resolution Foundation, said: “With the U.S. experiencing the …