The annual rate of inflation for goods leaving the factory gate increased for the first time in 6 months in August 2017. Factory gate prices (output prices) rose 3.4% on the year to August 2017, up from 3.2% in July 2017, with the change in the rate being driven mainly by petroleum products. Prices for materials and fuels (input prices) rose 7.6% on the year to August 2017, up from 6.2% in July 2017, with the change in the rate being driven mainly by crude oil. Recent rises to input costs may have now passed through industries that represent core inflation, although energy and food prices have grown in recent months.

Wednesday's session brought UK job figures. The employment rate (the proportion of people aged from 16 to 64 who were in work) was 75.3%, the highest since comparable records began in 1971. There were 1.46 million unemployed people (people not in work but seeking and available to work), 75,000 fewer than for February to April 2017 and 175,000 fewer than for a year earlier. The unemployment rate (the proportion of those in work plus those unemployed, that were unemployed) was 4.3%, down from 4.9% for a year earlier and the lowest since 1975.

Thursday's session was marked by BoE's interest rate decision. The Bank of England has said that higher inflation and a pick up in growth could lead to a rate hike in "the coming months". Members of the Bank's nine-strong Monetary Policy Committee voted 7-2 to keep interest rates on hold at 0.25%. But the committee was talking in much stronger terms about an increase, analysts said. The pound climbed more than 1% against the dollar to $1.3363 after the Bank's announcement.

Bank of England Governor Mark Carney said: "The majority of members of the Monetary Policy Committee, myself included, see that that balancing act is beginning to shift, and that in order to... return inflation to that 2% target in a sustainable manner, there may need to be some adjustment of interest rates in the coming months."Now, we'll take that decision based on the data. But yes that possibility has definitely increased."

This week markets will be looking at:

Retail Sales (Wednesday 10:30)

Public Sector Net Borrowing (Thursday 10:30)