Slowing price growth in Europe is likely to reverse, according to one ECB official, adding that the central bank is ready to tackle any possible disinflation.
The Bank of England warned that interest rates might rise as early as next year as its chief economist said Threadneedle Street's desire to keep borrowing costs low for several years could be thwarted by a combination of stronger than expected growth and unusually weak productivity.
Higher than expected inflation is a problem for George Osborne.
Inflation last month was higher than expected, keeping household budgets under pressure even before the next round of energy bill increases come in this winter.
Inflation eased down to 2.7% in August thanks to smaller price rises for petrol and new autumn fashion ranges but the cost of living continued to outstrip pay rises.
The economy has regained the pace of growth inherited by the government when it came to office in 2010, according to a leading economics institute.
Mark Carney has had the dream start as governor of the Bank of England.
Inflation fell in July but remains well in excess of pay rises for the average British worker, leaving many households struggling with falling incomes.
The new governor of the Bank of England, Mark Carney, has signalled that Britain's ultra-low interest rates would remain unchanged until well after the 2015 general election as he stressed that only a big fall in unemployment would bring an end to the cheap money of the past four years.