Inflation data for August is due for publication on Wednesday. Bloomberg consensus expects a rise in the rate of inflation, possibly even back to 7% or above. And the core rate has been quite stubborn for some time anyway. So when will we finally see a fall in inflation? The recent data on wage growth leaves room for doubt on that front. Just like past inflation publications that frequently surprised to the upside.

So should Wednesday’s inflation data be in line with expectations or even above, with the BoE sounding dovish on Thursday the downtrend in Sterling is likely to continue.