Tuesday was marked by Spanish and German CPI figures. According to the flash estimate published by the INE, the annual inflation of the CPI in November 2016 is 0.7%. This indicator provides a preview of the CPI that, if confirmed, would imply the maintenance of its annual change, given that in October this change was 0.7%. In this behavior, it is noteworthy the drop in the prices of fuels (gasoil and gasoline). The inflation rate in Germany as measured by the consumer price index is expected to be +0.8% in November 2016. Based on the results available so far, the Federal Statistical Office (Destatis) also reports that the consumer prices are expected to increase by 0.1% on October of the year.
Focus of Wednesday's session was on CPI figures were published. Euro area annual inflation is expected to be 0.6% in November 2016, up from 0.5% in October 2016, according to a flash estimate from Eurostat, the statistical office of the European Union. Looking at the main components of euro area inflation, services is expected to have the highest annual rate in November (1.1%, stable compared with October), followed by food, alcohol & tobacco (0.7%, compared with 0.4% in October), non-energy industrial goods (0.3%, stable compared with October) and energy (-1.1%, compared with -0.9% in October).
This week markets will be looking at:
Minimum Bid Rate/ ECB Press Conference (Thursday 14:30)
