Friday was marked by UK Retail Sales and Public Sector Net Borrowing data. Compared with December 2015, the quantity bought in the retail industry is estimated to have increased by 2.3%. Incline by 0.8% was expected. Average store prices (including petrol stations) fell by 2.6% in January 2016 compared with January 2015, the 19th consecutive month of year-on-year price falls. The amount spent in the retail industry increased by 2.4% in January 2016 compared with January 2015 and increased by 2.3% compared with December 2015.
Public sector net borrowing excluding public sector banks decreased by £10.6 billion to £66.5 billion in the current financial year-to-date (April 2015 to January 2016) compared with the same period in the previous financial year.
Public sector net borrowing excluding public sector banks was in a surplus of £11.2 billion in January 2016, a £1.0 billion greater surplus compared with January 2015.
In the US session CPI figures were released. The Consumer Price Index for All Urban Consumers was unchanged in January on a seasonally adjusted basis, beating forecasts on 0.1% decrease. Over the last 12 months, the all items index increased 1.4% before seasonal adjustment. An increase in the index for all items less food and energy offset a decline in the energy index to lead to the seasonally adjusted all items index being unchanged. The energy index fell 2.8 percent as all of its major component indexes declined. The index for all items less food and energy rose 0.3% in January. The increase was broad-based, with most of the major components rising, but increases in the indexes for shelter and medical care were the largest contributors.
With no major data releases both from UK and USA on Monday, we can expect a bit steadier session, with traders being cautious ahead of GDP figures later in the week.
