Daily update
Daily update
- The UK’s BRC shop price index registered another meaningful amount of disinflation, as the profit-led inflation episode seems to be working towards a conclusion. Food prices in this index do include the discounts of supermarkets’ dual pricing structure, and those are not in consumer price data, so the slowing of the food sub index will be greater than the disinflation of the official numbers.
- Euro area consumer price data for October is creeping towards the ECB target. German and Spanish price inflation was already slower than expected. The consensus expects a Euro figure just over 3%, and a downside surprise would take the number within a percentage point of the ECB target (anything within a percentage point of the target could be considered “on target” in the imprecise world of economics).
- The Bank of Japan made an infinitesimal change to its policy of controlling long term yields—the 10-year bond does not have a yield ceiling of 1% any more—it is now “about” 1%. Markets appear to be less than excited about a six-letter word. It does, perhaps, signal a slow move towards a policy change.
- US consumer confidence data is not that exciting, and there are some house price figures due too.
