Rising gold prices and falling government bond yields reflect investors’ uncertainty over whether inflation or deflation is the threat to fear for price stability. This week’s data should provide fuel for both sides of that debate.

UK inflation data for September, due out on Tuesday, should show the headline consumer prices (CPI) measure fall from 1.6 per cent in August to 1.3 per cent, the lowest rate for five years. Higher petrol and diesel prices contributed to upward pressure on inflation in July and there was also a jump in used car prices. However, September will probably mark the trough for UK CPI inflation and sharp increases are forecast before the end of the year.