January US inflation data
Due to positive base effects, the US Consumer Price Index (CPI) inflation is expected to show a seventh straight month of reduction in January. According to estimates, the reduction will be less than in prior months, dropping from 6.5% to 6.3%.
However, because of the surge in gas costs, the monthly rate is anticipated to climb by 0.5%. In addition, a substantial rise in the cost of used cars and a high inflation rate for services would also contribute to an overall increase in inflation. As a result, the annual core CPI is anticipated to moderate, but the monthly increase is forecast to be equal to the December increase that was upwardly revised by 0.4%.
These findings concur with Powell’s prior warnings that the disinflationary process is likely to be uneven. Powell is the chairman of the US Federal Reserve.
Eurozone Q4 GDP and UK CPI Data
The original estimate of a 0.1% increase in the fourth quarter Gross Domestic Product (GDP) update for the Eurozone is not anticipated to be changed. However, the Consumer Price Index (CPI) data for the UK, which is coming tomorrow, is anticipated to show a third straight fall in annual inflation. Despite this drop, it is anticipated that the headline rate will stay in the double digits at 10.2% as opposed to 10.5%. Core CPI is anticipated to decrease from 6.3% to 6.1%.