Tuesday preview: UK inflation expected to rise in September

UK inflation is expected to have picked up in September as a weaker post-Brexit pound makes imports more expensive.

The Office for National Statistics releases its latest inflation data on Tuesday. Economists expect the consumer price index to have risen 0.9% in September from a year ago, compared to a 0.6% year-on-year increase in August.

On the month, however, CPI is forecast to slow to 0.2% growth in September from 0.3% in August.

Further afield, EY Item Club said it expects inflation to climb by 2.6% in 2017 due to a weaker pound following the UK's vote to leave the European Union. The think tank believes higher inflation will mute consumer spending, causing a prolonged period of weaker economic growth in Britain.

Bank of England Governor Mark Carney last week warned that the price of goods, including food items, will increase due to the fall in the value of the pound. He said the situation was going to be difficult for low income earners but the BoE will keep interest rates low to cushion the blow.

Carney also said the central bank is willing to “tolerate a bit of an overshoot in inflation” over the course of the next few years in order to avoid higher joblessness. The Bank is targeting 2% inflation.

Tuesday 18 October

INTERIMS
B.P. Marsh & Partners, Gear4music (Holdings)

INTERIM DIVIDEND PAYMENT DATE
Worldpay Group (WI)

INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Consumer Price Index (US) (13:30)

Q3
ARM Holdings

FINALS
ASOS, Connect Group, DotDigital Group, Utilitywise plc

AGMS
Frontier Developments, Scancell Holdings

TRADING ANNOUNCEMENTS
Fusionex International, Hays

UK ECONOMIC ANNOUNCEMENTS
Consumer Price Index (09:30)
Producer Price Index (09:30)
Retail Price Index (09:30)