In China, consumer price inflation increased slightly in December, reaching 1.8% and the decline of producer prices was smaller than before, but larger than expected.
In the euro area, the unemployment rate was stable at 6.5% in November. In Japan, the Eco Watchers survey’s assessment of the current situation edged down but the outlook improved and surprised positively. In the UK, the November estimate of monthly GDP surprised by showing a slight increase of 0.1%. In the US, small business sentiment declined in December. In the same month, monthly headline inflation was slightly negative at -0.1% but core inflation increased 0.3%. Both numbers were in line with expectations. Jobless claims were stable and surprised positively. University of Michigan sentiment was better than anticipated. Expectations moved higher but the assessment of current conditions improved even more. One-year inflation expectations were down but longer-term expectations edged higher.
Latest indicators (Bloomberg)
Coming indicators
Several data will be published in China for the month of December (industrial production, retail sales, jobless rates, investment data) as well as GDP growth for the fourth quarter of 2022. In the UK, we will have labour market numbers, inflation data, retail sales and consumer confidence. The ZEW survey will be released for Germany and the euro area. For the latter, we will also have the final inflation numbers. In the US we will have producer price inflation, retail sales and housing market data. The Federal Reserve will publish its beige book. Finally, markets are eagerly awaiting the outcome of the Bank of Japan meeting to see whether there is any change triggered by the recent increase in inflation.
The week ahead
