Events that marked the week:
From Eurozone, on Friday, German and Spanish CPI as well as M3 Money Supply figures were released. The inflation rate in Germany as measured by the consumer price index is expected to be 1.7% in December 2017. Compared with November 2017, consumer prices are expected to increase by 0.6%. Based on the results available so far, the Federal Statistical Office (Destatis) also reports that, on an annual average, the inflation rate is expected to stand at 1.8% in 2017.
The estimated Spanish annual inflation of the CPI in December 2017 is 1.2%, according to the advance indicator prepared by the INE. This indicator provides an advance of the CPI which, if confirmed, would imply decrease of five tenths in its annual rate, since in the month of November this variation was 1.7%. This behavior highlights the rise in the prices of fuels (diesel oil and gasoline), lower than that registered in 2016.
The annual growth rate of the broad monetary aggregate M3 stood at 4.9% in November 2017, after 5.0% in October, averaging 5.0% in the three months up to November. The components of M3 showed the following developments. The annual growth rate of the narrower aggregate, including currency in circulation and overnight deposits (M1), decreased to 9.1% in November, from 9.4% in October. The annual growth rate of short-term deposits other than overnight deposits (M2-M1) was less negative at -2.5% in November, from -2.7% in October.
This week markets will be looking at:
Spanish Unemployment Change (Wednesday 9:00)
CPI Flash Estimate (Friday 11:00)
