Eurozone inflation and UK retail sales in the limelight – Danske Bank
In the euro area, the final October HICP inflation figures are due to be released, likely confirming that headline inflation fell back to 1.4%, according to analysts at Danske Bank.
“Focus will be on what items caused the unexpected fall in service price inflation, bringing core inflation down to 0.9%. Judging from the country figures released already, we expect the drop to be due mainly to volatile items such as package tours and hence not point towards the start of any sustained downward trend in service price inflation.”
“In the US, industrial production data for October is due for release. We believe that the current development in industrial production broadly reflects the strength of the economy and hence estimate industrial production increased 0.25% in October.”
“In the UK, we will get retail sales excluding fuels for October. Retail sales growth has slowed due to negative real wage growth and is one of the reasons GDP growth has slowed this year. That said, UK retail sales is not the best indicator of actual consumption growth.”