How will the latest inflation figures affect Reeves's plan?

It’s early days, obviously, but one of the factors that helps any government “deliver” and win re-election is a healthy economy. Having repeatedly stated that they inherited the worst economic situation since the war – albeit a highly tendentious claim – Labour undoubtedly faces a challenge in achieving the electorally magical combination of low inflation, high employment, rising living standards, healthy public finances, and moderate interest rates.

- SEAN O'GRADY

Within that framework, the news that the annual rate of inflation in August was unchanged at 2.2 per cent revealed a rather mixed picture. It was in line with market expectations, but there is still significant “core” inflation (stripping out volatile items such as food and energy) and inflation in the service sector (which best reflects what’s happening with wages and is the first to signal any danger of a homegrown “price-wage spiral”).

The Bank of England’s Monetary Policy Committee (MPC) meets at noon to consider its next move on interest rates...

What will the MPC do?

Most likely it will pause the current trend to lower rates, and wait and see how inflation and other stats progress this month and next. The decision will be finely balanced in any case (it was 5 to 4 in favour of a 0.25 per cent cut to 5 per cent in the Bank rate last month).