UK inflation could fall back to 0%

Some analysts even see CPI turning negative again after a sharp fall in crude oil prices and a supermarket price war cut the cost of petrol

Sharp falls in petrol prices are expected to have pulled UK inflation back down to zero in August, economists predict ahead of the latest official figures today.

Financial markets will be looking to inflation data at 9.30am for clues as to when the Bank of England will start raising interest rates after more than six years at their record low of 0.5%. The US Federal Reserve is expected, by a slim majority of economists, to hike its main interest rate this week, but experts believe the UK's central bank will wait until at least the end of the year to follow suit.