The OECD recently predicted that the UK will experience the highest inflation among all advanced economies this year.
U.K. inflation surprised with a dip to 6.7% in August, below expectations and sparking increased bets on a pause in interest rate hikes from the Bank of England on Thursday.
The goods rate rose slightly from 6.1% to 6.3% but was more than offset by the services rate slowing significantly from 7.4% to 6.8%.
Caroline Simmons, U.K. chief investment officer at UBS, told CNBC that the central bank will still most likely hike on Thursday.
"We do believe that's going to be their last hike, however, because we do have these downward forces on inflation," she added.
Persons:
Raoul Ruparel, Ruparel, Caroline Simmons
Organizations:
OECD, Bank of England, Reuters, National Statistics, Boston Consulting Groups, for Growth, of England, UBS, CNBC
Locations:
Sheffield, London