The UK's Consumer Price Index (CPI) is expected to rise by 2.0% in June, matching the rate in May, while the Core CPI is likely to remain steady at 3.5%.

The UK inflation report may bolster the Bank of England's (BoE) decision to increase the rate hike in August and could result in heightened volatility for the pound.

Meanwhile, BoE's Chief Economist Pill has downplayed expectations for an August rate hike. Pill stated, "I think it's still an open question whether now is the right time for a rate hike," adding that inflation in the service sector and wage growth demonstrate the labor market's strength.

Source: Fxstreet