NEWSFEED HIGHLIGHTS

LONDON – The UK inflation rate, as measured by the consumer price index (CPI), fell last month by the most in a year, providing some relief for households and businesses. However, stubborn services costs remain a reminder that challenges persist for policymakers.

The Office for National Statistics (ONS) said headline CPI rose 3.0% y/y in January, in line with estimates and down from the prior 3.4% print.

FRANKFURT – Concerns over financial firms and information technology have muted investor confidence in Europe’s largest economy.

Germany’s ZEW thinktank said Tuesday that its February expectations indicator for the coming half-year slipped to 58.3 points to fall short of the forecast of 65.2 and last month’s reading of 59.6, the best showing since July 2021.

This seemed to... 

FRANKFURT – A leading measure of investor confidence in Germany is expected to show growth for a third straight month as the country gears up to become increasingly responsible for its own defence.

An analysts’ poll predicted that the forward-looking economic sentiment reading from a survey conducted by Germany’s ZEW economic institute will improve to 65.0 points from last month’s 59.6, which was the best showing... 

The latest US inflation report gave Fed hawks pause for thought, as data from the Bureau of Labor Statistics rounded off a busy week for top-tier releases, even against the backdrop of a partial federal government shutdown.

Headline CPI rose 0.2% m/m in January, a tenth softer than both consensus and December’s print. On an annual basis, price growth slowed to 2.4%, below the 2.5% forecast and down from 2.7% previously. Core CPI increased an in-line 0.3% m/m, a tenth... 

It has been a bumper week for top-tier US data, with Friday’s inflation report set to crown proceedings.

Headline CPI is forecast to cool to 2.5% y/y in January from 2.7% previously. On the month, prices are expected to rise 0.3%, matching December’s pace. Annual core CPI is seen at 2.5%, a tenth lower than the prior reading, while the monthly core gauge is projected to print 0.3%, a tenth firmer than last time.

Citi analysts expect inflation to soften...