The Bank of England has trimmed its forecast for U.K. economic growth this year to 0.8 percent, but expects inflation to remain above target for another year.

In its quarterly Inflation Report released Wednesday, the Bank reduced its growth forecast from 1 percent three months ago.

And the Bank abandoned hope that inflation, now 3.5 percent, will fall back to the official 2 percent target by the end of the year. Bank Governor Mervyn King says he now expects inflation to return to target in the second half of next year.

Meanwhile, official data showed Britain's unemployment rate dropped to 8.2 percent in the first quarter, down from 8.4 percent in the last three months of 2011. The latest figure was lower than the market consensus of 8.3 percent.