This week, the highly anticipated December inflation report will be released in the US. The annual rate of inflation in the US is expected to slow to 6.6% from 7.1%. This could be the lowest reading since October 2021. Next week will also feature the University of Michigan’s consumer sentiment and import and export prices. The earnings season will also kick off on Friday, with reports from Bank of America, BlackRock, Citigroup, JPMorgan Chase, and Wells Fargo, among others.
In the UK, monthly GDP data will be published, alongside foreign trade, industrial production, and construction output. In Europe, the Eurozone unemployment rate is expected to have remained steady at a record low in November. Germany will also release preliminary 2022 GDP data, with forecasts pointing to a slowdown to 1.9% from 2.6% seen in 2021.
In Asia, all eyes will be on Chinese trade data for further insight into the impact of the recent surge in Covid infections on the economy. China will also release fresh CPI, PPI, and housing price figures. In Japan, a muted week of economic releases will be headlined by November’s current account data. India will release industrial production figures and the inflation rate for November, followed by December’s trade balance. The Bank of Korea is also expected to continue raising borrowing costs.
In Australia, a busy week of releases includes January’s Westpac consumer confidence, November’s trade balance and retail sales count, and fresh labor data for December. In New Zealand, investors are waiting for year-end PMI figures.