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Data Of The Week: The Consumer Price Index

The celebrations for the Chinese New Year are finally over and the major stock exchanges of the Asian giant are now operating, as well as those of its neighbors Japan and India.

Japan has opened the week making public its Gross Domestic Product Annualized for the fourth quarter. Japanese GDP were below market expectations falling to -1.4%.

After that, it was the turn of China’s trade balance that increased from 382 billion to 406 billion.

Nevertheless, while China stock markets registered a slight fall in Monday’ session, the Nikkei has recovered part of the losses of recent days, bouncing of +7.16%.

However, the United Kingdom was the first on the list to publish what we could nominate as the index of the week: the consumer price index.

Almost everyone, from Europe to the United States, passing through China, published their annual, monthly and core versions of this index during the whole week.

The index of UK consumer prices on an annual basis in January increased from 0.2% to 0.3%; the core version however has decreased from 1.4% to 1.2%.

On Wednesday, the National Statistics Institute has also made public the data on the level of unemployment in the United Kingdom. In particular, the unemployment rate in December registered a variation of 5.1% which is in line with the previous one of 5.1%.

China‘s consumer price index rose to 1.8 from 1.6% in January. Even the index of producer prices suffered the same fate, although increasing slightly from -5.9% to -5.3%.

It began to raise instead the inflation in the United States in January, as confirmed by the Bureau of Labor Statistics.

Consumer prices in the United State increased by 1.4% compared to January 2015, against the previous result to + 0.7%. In terms of monthly variation, inflation rises to 0.0% against the previous result in negative territory at -0.1% and analysts’ forecasts for a result unchanged.

The “core” version, net of food and energy prices, inflation shows a rise of 0.3% on a monthly basis (previous 0.2%) and 2.2% at the annual level (previous 2.1%, expectations 2.1%).

The euro-dollar exchange rate has recovered its losses after the release of US inflation report.

EUR/USD was initially pushed down by the strength of the US dollar, which has pulled down the euro-dollar to 1.1065. The last time we saw this level, it was on February the 3rd. Although, the recovery from the negative movement was triggered immediately after the publication of the data. The euro-dollar has marked a fall on Friday of 0.0%.

On the Forex market, the euro-dollar exchange rate is resistant to falls but it might always score a negative performance, down from the peak of the month at 1.1375.

At the end of the week, even in Canada, it was published the data concerning retail sales and the consumer price index for the month of January.

Last month, retail sales fell more than expected, going from 1.7% to -2.2%. Even those ex cars sales (core version) disappointed, falling to -1.6%, from 1.0% of the previous month.

Canadian inflation in January climbs instead. Consumer prices rise 2.0% compared to last year, compared with the previous result to 1.6%.

On a monthly basis, inflation rises by 0.2%, leaving the marked deflation of the previous month to -0.5%. The core version (excluding food and energy) shows an annualized rise of 2.0% (in 2015 has been 1.9%) and a monthly 0.3% (last month was -0.4%).

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