Morgan Stanley Research previews the UK August inflation report due on Wednesday.

"We expect headline CPI to tick up to 3.1%Y driven almost entirely by energy - auto pump prices rose by 7%M in August," MS notes.

"We see core inflation at 2.6%Y, unchanged from July. We forecast services inflation at 0.3%M with the rise driven by base effects in airfares. Our RPI inflation forecast rounds up to 3.5%Y, and is below the market fixing," MS adds.