Money markets are betting that the Bank of England will unveil its biggest ever hike in interest rates when it meets next week.
Economists said it was likely that the bank’s Monetary Policy Committee would raise the rate by 75 basis points to 2.5%.
Figures from the ONS showed a dip in headline consumer prices inflation to 9.9% in the year to August, a drop from 10.1% the previous month. This was largely thanks to a fall in petrol prices.
But while this defied widespread expectations of another rise, the dip could prove short-lived. As one economist said: “One month’s figures are not a trend.”
