Jan 6, 2025
The week ahead is set to provide crucial insights into economic trends as both the Eurozone’s inflation figures and the US non-farm payroll data draw attention from investors. These developments will be pivotal in shaping monetary policies across the Atlantic. For further details, see the full article on Euronews.
This week is marked by the anticipated release of the Eurozone’s flash inflation data for December. According to IndexBox, the consumer price index (CPI) in the Eurozone is expected to rise to 2.4%, up from 2.2% in November. Meanwhile, core inflation, excluding food and energy prices, is projected to remain steady at 2.7%. These numbers are critical as they may influence the European Central Bank’s (ECB) monetary policy decisions moving forward. Preliminary inflation data from Germany, France, and Italy are also on the agenda, each expected to underscore an upward inflationary trend.
On the other side of the Atlantic, US non-farm payroll data will be released shortly, providing valuable insights into the American labor market. As per IndexBox, the US is projected to have added 153,000 jobs in December, with the unemployment rate holding steady at 4.2%. These figures might suggest a cooling labor market, potentially impacting the Federal Reserve’s dovish stance towards future rate cuts.
In addition to these economic indicators, attention will be on the FOMC meeting minutes, which will shed light on the Federal Reserve’s policy pathway. November recorded an addition of 227,000 new jobs, with the unemployment rate slightly increasing from 4.1% to 4.2%. This backdrop has led the Fed to project a 50 basis point rate cut in 2025, down from the earlier forecasted full percentage point cut, suggesting a nuanced approach to rate decisions.
Outside these core economies, China is slated to publish its consumer and producer price indices for December. With consumer prices expected to rise by just 0.1%, compared to a 0.2% increase in November, the data indicates persistent disinflationary pressures within the country, primarily due to subdued consumer demand.
Moreover, Australia will release its November CPI figures, forecasted to edge up to 2.2% from 2.1% the previous month. Observers anticipate that the Reserve Bank of Australia will initiate rate cuts starting in May 2025, aligning with broader regional monetary trends.
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