Policymakers at the Bank of England are anticipated to keep interest rates unchanged, despite an acceleration in price rises. The nine-member Monetary Policy Committee (MPC) is expected to hold the benchmark Bank rate at 3.75% for its sixth consecutive meeting.
This decision comes as official figures released on Wednesday showed the Consumer Prices Index (CPI) measure of inflation increased to 3.1% in August, up from 2.9% in July. This marks its highest rate in six months, driven by rises in the cost of petrol, diesel, and airfares.
The MPC's meeting takes place against a backdrop of increasing global energy prices and interest rate rises internationally. Oil prices have been above $100 a barrel since September 9. The latest interest rate decision is scheduled to be announced by the Bank at 12:00 BST on Thursday.