UK Consumer Price Inflation Eases
The just released inflation report has shown that annual consumer prices in the UK grew at a slower than expected pace for November. However, encouraging producer price inflation data has overshadowed a weak consumer prices report, leading the Pound to nudge higher against the majors this morning. Meanwhile, risks emanating from the Euro zone’s weak macro health, as highlighted in today’s BoE financial stability report, has limited the upside in the Pound.
Across Europe, data released earlier today showed a more than expected improvement in Euro zone manufacturing activity for December. Going forward today, the flash Markit manufacturing PMI reading in the US will provide an early insight into the nation’s manufacturing sector performance, especially after yesterday’s upside surprise in industrial production data.