The performance of the economy will be in sharp focus on Wednesday as the latest round of UK inflation data is delivered, the first since December’s general election.
Analysts at Capital Economics said they expect the flurry of data releases “will further reduce expectations of an interest rate cut this year”, predicting that inflation will have “rebounded in January” following Tuesday’s strong job figures which showed the employment rate at a record high for the three months to December.
Capital is also expecting positive retail sales data on Thursday and an upturn in the activity PMIs on Friday.
The data will also be eyed ahead of the new budget, which is due to be delivered on 11 March by newly installed Chancellor of the Exchequer Rishi Sunak, who replaced Sajid Javid following the latter’s shock resignation last week.
Significant announcements expected for Wednesday February 19:
Economic data: UK CPI, RIP, PPI HPI inflation; UK construction output; US housing starts; US PPI; US FOMC minutes