Peter Ranscombe: Inflation report set to dominate as Bank faces questions

The Bank of England is unlikely to receive any relief from the stubbornly-high rate of inflation seen in recent months when the latest consumer prices index (CPI) figures are released tomorrow.

The Bank itself predicted a spike in inflation towards the end of the year in its quarterly forecast as commodity prices continue to soar.

Last month, the Office for National Statistics (ONS) said the consumer prices index rose to 3.2 per cent and economists expect the rate to hold firm in November.

But the Bank - which aims to bring inflation down to 2 per cent - has insisted that current levels of inflation are down to temporary price shocks, such as food and petrol costs.

Carpetright, which reports interim results tomorrow, has had a difficult start to the year with cautious consumers avoiding spending on big-ticket items.

In its last trading update, the flooring firm warned like-for-like sales were down 7.3 per cent in the UK and Ireland in the 12 weeks to 23 October, compared with the 3.4 per cent fall seen at the end of July.

Analysts expects the decline in sales to hit profits in its interim results, which are predicted to come in at about 12m, down from 13.9m last year.

The City will be looking for any changes in strategy to pick sales up, particularly after chairman and chief executive Lord Harris of Peckham warned current market conditions are likely to continue into next year.

Whitbread is expected to continue its positive run this year when it gives its third-quarter trading update tomorrow. The firm has benefited from a strong performance at its budget hotel brand Premier Inn, which saw like-for-like sales soar 10.1 per cent in the first half of the year.

Whitbread is expected to reveal further plans for expanding the hotel chain, after an advertising campaign fronted by comedian Lenny Henry and a 29 a room offer helped draw in customers.

The group, which also owns Costa Coffee and restaurants including Brewers Fayre, previously said it was prepared to increase the rate of new hotel openings and is expected to provide further details.

Whitbread posted a 28 per cent increase in pre-tax profits of 151m in the six months to 2 September, on total revenues of 805m.

Premier Inn generates around one-third of its profits.

Numis Securities expects the group to bring in full-year profits of 282.3m, up from 239.1m.Retailer Sports Direct expects to report a jump in profits on Thursday, but has been cautious about its outlook.

Sports Direct - controlled by Mike Ashley, the owner of Newcastle football club - saw the boost from the World Cup in the first quarter continue into the second as sales lifted 5.4 per cent to 295m in the nine weeks to 26 September.

But the owner of Sports World stores and brands including Slazenger and Donnay has warned that it expects the early months of 2011 to be "extremely challenging".

The company is expected to hold on to some of its higher-than-expected earnings despite the uncertain trading outlook.

The City will be looking for any signs that the company plans to capitalise on the poor performance at rival JJB Sports.