MNI BRIEF: BOE Officials Wait ON UK Price Data

Bank of England officials will closely watch UK inflation data Wednesday, as prices likely rose sharply again, with analysts pointing to an annual rate accelerating to 3.9%, taking the CPI index to its highest level since December 2011, when inflation stood at 4.2%.

The outlook matches the forecast of Bank of England economists, who expect "inflation to rise to just under 4% in October, accounted for predominantly by the impact on utility bills of past strength in wholesale gas prices," according to minutes of the Monetary Policy Committee meeting earlier this month. BOE Governor Andrew Bailey expressed his concerns over the inflation to the Treasury Select Committee on Monday.

With energy accounting for much of the expected October rise, core inflation is forecast to rise more modestly, to 3.1% from 2.9% previously, although still the biggest annual increase since early 2012. Despite a fall in headline inflation in September -- largely due to the effects of the Eat Out to Help Out scheme a year earlier -- prices rose in eight of the 12 major categories in September, suggesting broader-based pressures.