Inflation Watch: CPI Data Unveiled Across Countries

Tuesday, 16 July 2024, 08:30 – Canada CPI (MoM) (Jun)

In May, Canada’s Consumer Price Index rose by 0.6%, surpassing both market forecasts of 0.6% and the previous figure of 0.5%. Statistics Canada attributes this increase primarily to higher food prices, especially for wheat-based products, which exerted notable inflationary pressures. Additionally, elevated energy expenses, particularly for gasoline, also contributed to the overall price uptick. Looking ahead, analysts anticipate that forthcoming data will likely reflect sustained inflationary pressures, driven by ongoing disruptions in the supply chain.

Tuesday, 16 July 2024, 08:30 – US Retail Sales (MoM) (Jun)

The latest U.S. retail sales data for May 2024 shows a modest 0.1% month-over-month increase, a slight improvement following the previous month’s 0.2% decline. This growth is driven by a gradual rise in sales, particularly in food services, but is tempered by challenges from inflation and economic uncertainty. Market expects that, given the current economic conditions, the upcoming data will likely reflect a steady but moderate growth trajectory, with slight month-over-month increases as consumer spending remains resilient but cautious.

Wednesday, 17 July 2024, 02:00 – UK CPI (YoY) (Jun)

The UK’s Consumer Price Index (CPI) for May 2024 indicates an annual inflation rate of 2.0%, down from 2.3% recorded in the previous month. This aligns with expectations and represents a notable decline from earlier months this year, which saw higher inflation influenced by factors such as energy costs and supply chain disruptions. Decreases in prices for food, non-alcoholic beverages, recreation and culture were key drivers behind this decline, with the food category specifically showing a 14-month trend of easing, according to the Office for National Statistics.

Wednesday, 17 July 2024, 05:00 – Eurozone CPI (YoY) (Jun)

The latest Eurozone CPI data for June 2024 shows that annual inflation has eased to 2.5% in the preliminary release, down slightly from 2.6% in May 2024. This decrease is in line with economists’ expectations and raises hopes for potential interest rate cuts by the European Central Bank (ECB). Factors such as stabilization in energy prices, increased demand in the service sector, and a slight decrease in food costs contribute to the current inflation rate. Analysts expect that inflation is likely to continue hovering around these levels unless there are significant changes in energy prices or unexpected economic disruptions.

Thursday, 18 July 2024, 18:45 – New Zealand CPI (YoY)

In the March 2024 quarter, New Zealand’s Consumer Price Index reported an annual inflation rate of 4.0%, down from 4.7% in the previous quarter. This decrease was driven by significant disinflation in food prices, which helped counteract inflationary pressures from housing and household utilities sectors. The Reserve Bank of New Zealand (RBNZ) aims to steer inflation towards its target range of 1-3%, indicating potential adjustments to the Official Cash Rate (OCR) based on future inflation trends and economic conditions. the upcoming CPI release is expected to reflect the ongoing impacts of the RBNZ’s monetary policies with the inflation likely to continue decreasing gradually, influenced by ongoing adjustments in interest rates.