Following a series of relatively hawkish comments by governor Mark Carney and other members of the monetary policy committee (MPC), the Bank had appeared poised to raise the cost of borrowing back to its previous low of 0.5%, the first hike since the 2008 financial crisis.
The CPI data this morning revealed that prices of consumer goods, boosted by food and transport, are climbing at their highest rate since 2012.
"The pressure from this depreciation will start to wane in coming months", Silvana Tenreyro, the newest member on the Bank of England's nine-member rate-setting panel, told lawmakers.More news: Nifty scales record level, Sensex at 2-month high
"For some time our expectation has been that inflation would rise above 3 percent, with the annual rate of CPI likely to hit a peak of 3.2 percent in next month's release for October", added Lloyds Bank.
Tenreyro, meanwhile, aired her opinion that she wasn't yet ready to vote for a rate hike. Carney has previously said he is part of that majority.
"To increase interest in future potential shocks, inflation does not mean staying in our goal", said Carney, pointing out that re is no right strategy for immediate increase in order to reduce policy interest in future.More news: Jets fall to Patriots after controversial replay call
The consumer prices index increased to 3 per cent in September, up from August's 2.9 per cent and the highest reading since 2012, according to the Office for National Statistics.
Samuel Tombs, chief United Kingdom economist at Pantheon Macroeconomics, said inflation is likely to peak at 3.1% in October and return to target by late 2018, "discouraging" the Bank of England from raising interest rates a few times over the next 12 months. We expect inflation to approach summit in October.
The UK Office for National Statistics has reported a surge in the nation's inflation rate amid ongoing Brexit talks with European Union to determine the terms of the country's exit from the bloc and a weak pound.More news: Sessions Gives Sanctuary Cities a Final Warning
However, the British pound remained lower against the dollar despite confirmation of Carney's view on inflation. When inflation rises, it's more likely the central bank will raise interest rates to help slow the pace of inflation. That suggests investors are now less certain of a November rate hike.