According to Jinshi, ING's developed market economist Smith said that the concerns of Bank of England policymakers about the rise in UK service prices in August may not be as serious as they initially seemed. Smith pointed out in the report that the recent rise in service industry inflation was mainly due to base effects and rising inflation in categories such as air tickets.

Smith said that while headline inflation will climb by the end of the year, the Bank of England's survey of businesses showed that both expected and actual wage and price growth continued to decline. He believes that as the job market continues to cool, the Bank of England's rate setters may turn to faster rate cuts throughout the winter.