Financial markets are already predicting, with more than 90% probability, that there will be a 0.25% hike in interest rates to 5.5% next month.
It is being forecast that the Bank of England will increase rates again in October as core inflation remains stubbornly close to a 31-year high.
CPI inflation was down to 6.8% in July, from 7.9% in June. However, core inflation remains sticky at 6.9%.
Current trends have left markets predicting that interest rates will now peak in March next year and remain above 5.5% throughout 2024.
Earlier this morning Chancellor Jeremy Hunt warned the country that it was “not at the finish line” in its battle with inflation.
“We must stick to our plan to halve inflation this year and get it back to the 2% target as soon as possible,” he added.
