Week Ahead
Figures to show inflation likely to remain sticky
Any easing in the inflation figures for December may take some of the pressure off the volatile gilt market, though the next interest rate decision remains in the balance.
Prices are expected to come in close to the 2.6% rise in November, according to Trading Economics. This excludes owner occupiers’ costs. some forecasters are looking for 2.5%.
However, the UK continues to have one of the highest inflation rates in the G7, mainly driven by rising energy prices and ongoing supply chain issues.
This is above the Bank of England’s 2% target and a cut in interest rates that was pencilled in for February may not take place, unless the bank decides to respond to deteriorating economic conditions. That may risk further depressing the pound which has fallen sharply in recent days.
UK gross domestic product figures for November will be published on Thursday amid growing concern over stagflation, a combination of persistent inflation and low growth.
This has contributed to a spike in UK debt yields and any sign of growth picking up would help bring them down.
US inflation is forecast to accelerate by 2.9%, compared with November’s 2.7% uptick in prices.
DIARY
Monday 13 January
- Trading statements from PageGroup
- Glen Sannox ferry enters service on Troon to Arran route
Tuesday 14 January
- Full-year results from Ramsdens
- First-half results from Games Workshop and Knights Group
- Trading statements from JD Sports, Ocado, Persimmon, Robert Walters, Hunting and MJ Gleeson
Wednesday 15 January
- Trading updates from Currys, Rio Tinto, Experian, Vistry, Hays and Xaar
- UK inflation figure for December
- Scottish Mortgage Forum, Edinburgh
- US inflation
Thursday 16 January
- Full-year results from Safestore
- Trading statements from Antofagasta, Dunelm, Taylor Wimpey, Harbour Energy, Deliveroo and Trustpilot
- UK GDP growth
- UK manufacturing, construction and industrial output
- US retail sales
Friday 17 January
- Trading updates from DFS Furniture and Petershill Partners
- ONS retail sales figures for December
- Chinese Q4 GDP growth
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