ECONOMIC DATA SPOTLIGHT : UNITED KINGDOM INFLATION SET TO CLIMB AS BOE RATE HIKE AND AUTUMN BUDGET COLLIDE

What happened: The UK CPI report is due Wednesday, with headline annual inflation expected to rise to 3.4% in September from 3.1% in August, ahead of the 28 October budget and the BOE's 5 November decision. Key numbers: Headline CPI forecast 3.4% in September vs 3.1% in August. Core CPI forecast 2.8% vs 2.6%. Why it matters: A hotter CPI reading could reinforce expectations for further BOE tightening, while a softer one likely won't resolve the UK's fiscal problems. Higher inflation makes the chancellor's balancing act between household relief and borrowing costs harder.

The UK CPI report is due Wednesday, with headline annual inflation expected to rise to 3.4% in September from 3.1% in August, ahead of the 28 October budget and the BOE's 5 November decision.

A hotter CPI reading could reinforce expectations for further BOE tightening, while a softer one likely won't resolve the UK's fiscal problems. Higher inflation makes the chancellor's balancing act between household relief and borrowing costs harder.