The latest price inflation figures show a larger than expected increase for the year to August.

The Consumer Prices Index (CPI) measure of price inflation was at 2.9%, up from 2.6% the previous month, with higher prices for clothes and fuel driving the increase.

A weaker pound sterling following the UK's vote to leave the EU last summer has contributed to higher import costs, with clothing up by 4.6% in the past year.

However, rising price inflation increases the prospect for an interest rate rise, and as a result pound sterling has strengthened against the US dollar and euro. 

The Bank of England's Monetary Policy Committee meets on Thursday to decide on interest rates.

Despite rising price inflation, which is largely import price driven, we don't expect any early movement on interest rate rises, although policymakers could set a more hawkish tone when their report is published.