Inflation data from the Office for National Statistics tomorrow will be particularly important after surprisingly stronger numbers a month ago.
The headline consumer prices index for May is forecast to drop below the 2.3% year-on-year in April, though forecasts vary from 1.9% to 2.1%.
Core CPI, which excludes fuel and food prices, is also expected to edge down and all-important services CPI too.
Despite interest rate cuts this month from its European and Canadian counterparts, the Bank of England is not expected to join in the recent cutting trend, but Wednesday's print could provide a clue about how close policymakers are to making the move.
As “key signs of inflation persistence” have been stronger than the BoE predicted since the last meeting, economists at BNP Paribas said, “we think it is likely that those who voted to keep Bank Rate on hold in May will need to see further evidence that inflationary pressures are easing before voting to cut rates”.
Economist Simon French at Panmure Gordon said he expects UK inflation to continue undershooting the G20 average through to the autumn, as it did in April for the first time since July 2021, which would give the MPC confidence to cut rates at its August meeting.