Inflation is set to rise again after the Bank of England cut interest rates for the first time in more than four years.
City analysts are predicting inflation will grow to 2.3%, up from the Bank's 2% target, as a favourable tailwind from energy bills fades out the figures.
The Office for National Statistics (ONS) will also provide updates on the pace of economic growth, the state of the labour market and retail sales.
The data will be central in setting the tone for the Bank's policy heading into the fourth quarter of the year, with a delay expected before the next interest rate cut.
Labour will be hoping for lower interest rates sooner rather than later, as well as an improvement in growth, to bring in more money for the Treasury to improve funding for public services.
Sanjay Raja, UK chief economist for Deutsche Bank, said that: "positive base effects, mainly from energy prices, will likely push headline inflation higher through the second half of 2024. But there is good news. Services inflation should continue its descent, albeit gradually".
FTSE 100
The UK's flagship share index, the FTSE 100, was up 46-points at 8,214 shortly after opening this morning.
Brent crude oil futures were up 0.24%, trading at $79.85 a barrel.
Companies reporting today
12-Aug | |
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Barrick Gold* | Q2 Results |
Marshalls | Half Year Results |