UK Inflation Figures

The UK Office for National Statistics will release data on consumer price inflation for August at 08:30GMT (4:30AM ET) on Wednesday.

Analysts expect annual CPI to inch down to 2.4%, a tad slower than the 2.5% increase seen in July, while core inflation is forecast to dip from 1.9% to 1.8%.

In addition to the inflation report, traders will focus on monthly retail sales data due on Thursday for further hints on the health of the economy.

The Bank of England (BoE) kept interest rates on hold last week and highlighted greater financial market concerns about Brexit.

Brexit talks are set to intensify over the coming week, with the first of three summits that European Union leaders hope will settle an agreement for departing Britain within the next two months.

EU officials will get an update on negotiations in Austria on Thursday and also decide whether to hold a special summit on Brexit in November, now that they no longer expect to clinch a deal at their regular gathering scheduled for Oct. 18-19.

The timing of the meetings tallies with EU Brexit negotiator Michel Barnier's suggestion that an exit deal could be struck in six to eight weeks if negotiators are realistic in their demands.

Most economists do not expect the BoE to raise rates again until after Britain has left the EU.

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