Daily Market Report 18/05/16


Yesterday morning the UK’s consumer pricing index showed inflation fell in April for the first time since September, largely because of cheaper air fares after the Easter holidays. The Office for National Statistics (ONS) said the rate dropped to 0.3% and the main causes were falls in the prices of air fares, vehicles, clothing and social housing rents.

The largest downward effect came from air transport, with prices falling by 14.2%, compared with a rise of 4.5% between the same two months last year. This was influenced by the timing of the Easter holidays in March. Fare prices increased dramatically between February and March this year and then fell sharply in April.


Yesterday in the US monthly CPI grew to 0.4% against an expected level of  0.3%. This is significant as the cost of living in the US has now grown, in the month of April, by the greatest amount in three years. More than half of the rise in consumer inflation stemmed from a recent bump in the cost of gasoline. Rent was another major contributor, accounting for about one-fourth of the increase This is an indication that inflation is heading towards the levels that the Federal Reserve are seeking. 

Key Announcements

09:30 – GBP: UK ILO Unemployment Rate (March) expected to remain unchanged at 5.1%

10:00 – EUR: Eurozone Infaltion Rate MoM (April) expected to fall to 0% from 1.2%

11:30 - GBP: The Queen makes her  Annual Legislative Speech.

19:00 – USD: FOMC Meeting Minutes