Inflation will dominate macroeconomic headlines next week after news the UK economy barely grew during the third quarter.
Expectations are for the headline rate of inflation to have ticked up to 2.0% throughout October, against September’s 1.7%, according to IG analysts.
This opened the door for a second cyclical interest rate cut by the Bank of England in November, with an anticipated growth in price rises again pushing expectations for the next reduction into next year.
However, news most recently that the gross domestic product increased by just 0.1% in the three months to September may see this change, according to analysts, leaving focus on the upcoming consumer price index reading on Wednesday.
“The surprising fall in GDP in September means the economy almost ground to a halt in [the third quarter],” Pantheon Macro analysts said, “supporting the case for more rate cuts”.
Retail sales figures on Friday will add to the picture of the UK’s economic health, alongside purchasing managers index data from S&P and consumer confidence numbers.
Elsewhere, Eurozone inflation figures are also due next week, alongside retail sales data from the US.