GBP
U.K. inflation was expected to fall last month due to a fall in transport
prices but accelerated as the cost of toys rose in the run-up to
Christmas, the rate of consumer price growth increased to 1.3 percent from 1.2
percent in September. The pick in inflation up may prove temporary as Bank
of England Governor Mark Carney has warned about “disinflationary pressures”
being imported from the euro area.

GBP
U.K. inflation was expected to fall last month due to a fall in transport
prices but accelerated as the cost of toys rose in the run-up to
Christmas, the rate of consumer price growth increased to 1.3 percent from 1.2
percent in September. The pick in inflation up may prove temporary as Bank
of England Governor Mark Carney has warned about “disinflationary pressures”
being imported from the euro area.

Separate data yesterday showed input prices at factories fell an annual
8.4 percent, with imported food dropping a record 9.1 percent. 
Some economists have stated that inflation could fall below 1% in 2015 if oil
prices continue to fall and bring petrol prices down.

EUR
German investor confidence rose for the first time in 11 months. The ZEW Centre
for European Economic Research said its index of investor and analyst
expectations increased to 11.5 in November from minus 3.6 in October, beating
economists’ forecast for a rebound to 0.5.

Germany’s economy has lagged behind other European states as a whole in third
quarter. Growth was driven primarily by private consumption as equipment
investment dropped, construction fell and inventories contracted. The
government cut its growth forecasts last month, and the Bundesbank said
yesterday that the economy will lack momentum until at least the end of this
year.

USD
Wholesale prices unexpectedly increased in October as higher costs for services
and food outweighed a slump in energy. The 0.2 percent advance in the
producer-price index followed a 0.1 percent drop the prior month, the October
increase reflected the biggest gain in services costs since July 2013. 

Even with last month’s increase, wholesale prices over the last year were up
1.5 percent, the smallest gain since February and a sign that slowdowns in
global markets are reducing demand for raw materials such as crude oil.

Key
Announcements:

09:30 GBP : Bank of England Minutes
09:30 GBP : Bank of England interest rate vote count expected to be 7-2
19:00 USD : US Federal Reserve minutes discussing the state of
the US Economy

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