Good morning.
UK inflation climbed to 3.1% in August on higher energy prices, while core inflation remained unchanged at 2.6%.
Matching consensus forecasts, the data leaves the Bank of England’s Monetary Policy Committee facing a delicate balance ahead of tomorrow's rate decision: push against against a headline rate back at 3% for the first time since March on worries that it may spill into core, or hold off because core is contained? (Markets are pricing in an 80% probability of a hold.)
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@bankofengland