The second week of the new year comes with a small number of economic news, and this week's attention will be directed towards US inflation data and whether it will support the Federal Reserve's monetary policy path. In addition to a number of data releases from China and the UK, the following highlights show the most prominent events of the week:
British manufacturing production data released on Wednesday
In the early morning of Wednesday, China's inflation data will be released, and CPI is expected to rise by 1.9% in December after rising by 1.7% in the previous month, while the PPI is expected to slow to 4.8% after rising by 5.8% in November.
UK manufacturing production data for the month of November is expected to rise 0.3% after rising 0.1% in October, and industrial production is expected to rise by 0.4% in November. The issue of Brexit remains the biggest influence and cause of uncertainty for the British economy at the moment.
US inflation data released on Friday
The focus of the markets on this day and this week in general will be broadly on US inflation data, where the CPI is expected to rise by 0.2% in December, and on an annualized basis is expected to rise by 1.7%. The Federal Reserve aims to reach inflation towards its target of 2%, which will be a catalyst for the continuation of the tightening monetary policy initiated at the end of 2015.
