Markets are preparing this week for inflation data in a number of major economies, with weak inflation being a factor in a number of central banks’ decisions on whether to tighten monetary policy.
In this report, we will review a number of important economic data the markets are awaiting which are expected to affect market movement:
Tuesday - British inflation data
Experts predict that inflation in the UK will slow in January as the CPI is expected to rise by 2.9% from the previous December reading of 3%. Core inflation is also expected to slow to 2.5% in January from 2.6%. The Bank of England kept interest rates unchanged last week but indicated that it would hike it faster and sooner than expected to curb inflation.
Japan's GDP growth is expected to slow to 0.2% quarterly as compared with the third quarter of the same year, which grew by 0.6%. On an annualized basis, expectations are projected to slow to 0.9% Compared to 2.5% in the third quarter.
Wednesday - US inflation data
US Inflation data for January will also be released. Most experts expect CPI to rise by 0.3% on a monthly basis compared with December, which rose by 0.1%. On an annualized basis, core inflation is expected to stabilize at 1.8% in the month of January. It is known that the Federal Reserve aims to reach 2% inflation.
In Germany, the consumer price index for the euro zone's largest economy is expected to stabilize by 1.4% in January. Also, growth data for the eurozone will be released and GDP is expected to grow by 2.7% in the last quarter of 2017.
Thursday - Australian Employment Data
The Australian economy is expected to add about 9,000 jobs in January, following the addition of 34.7K jobs in December. Unemployment is also expected to fall to 5.4% from 5.5%. The Reserve Bank of Australia kept interest rates unchanged for the 16th consecutive meeting earlier this month.
