Inflation is expected to have risen for the first time this year, a setback for Sir Keir Starmer after his first month in power.
The Office for National Statistics will release the latest consumer price index for July on Wednesday, with economists expecting it to show prices rose by 2.3 percent year-on-year.
Inflation has been at the Bank of England's target of 2% since May, giving the Bank of England confidence to cut interest rates for the first time in four years earlier this month.
However, the next inflation figures could cast doubt on hopes for future rate cuts, especially if inflation in the services sector turns out to be stronger than expected. Money markets are currently expecting at least one more rate cut before the end of the year.
Catherine Mann, an external member of the Monetary Policy Committee that sets interest rates, said the UK should not be “seduced” into thinking inflation will remain low in the coming year.
Ms Mann, a former chief economist at the OECD, was one of four policymakers who voted at the last meeting to leave interest rates unchanged at 5.25%, the highest level in 16 years.
“Inflation has come down, but… we should not be seduced by headline inflation because of the role of energy and externalities that play a role,” she told the Financial Times.
She said survey data shows businesses expect wages and prices to rise, suggesting she “faces a problem next year.”
Elizabeth Martins, an economist at HSBC in the UK, said: “We see no urgent need for a further rate cut.”