After last week’s data frenzy, we have a quieter week on the data front this time. Our main focus will be on inflation statistics, out on Wednesday.
On Wednesday, the ONS will publish inflation data for the month of August. Last time round, the consumer price index rose to 2.5% - predominately on the back of rising energy prices which has seen the oil price fluctuating around the $75/barrel mark.
We expect prices to have eased back in August, with core inflation set to remain below the 2% mark. With last week’s labour market data showing a small acceleration in pay, the combination of softening prices and a (albeit) small pick-up in wages should be boosting consumers spending prospects.