Wednesday preview: UK inflation in focus as eyes turn to next BoE meeting

(Sharecast News) - Wednesday will be a busy day for macroeconomic analysis as investors digest a barrage of data from home and abroad. First up will be the July figures for UK consumer and producer price inflation, which will be keenly watched following Tuesday's news that wage growth unexpectedly accelerated to a record high.

"Inevitably this will increase the pressure on the Bank of England to raise rates again at its September meeting by another 25bps, even as headline CPI for July is expected to slow sharply below 7% in numbers released tomorrow," said chief market analyst Michael Hewson from CMC Markets UK.

Economists widely predict that consumer prices will have fallen 0.5% in July after a 0.1% gain in June. The annual rate of inflation is estimated to have dropped to 6.9% from 7.9%. On a core basis, which strips out more volatile food and energy prices, inflation is expected to have slowed from 6.9% to 6.8%.

The producer price index is estimated to have dropped 2.9% year-on-year after a 2.7% decline in June.

Elsewhere, Wednesday will see the release of EU industrial production figures, expected to show a 0.6% in monthly output in June after rising 0.2% in May.

Across the Pond, US housing starts and US industrial production data for July will be released before the opening bell on Wall Street, along with crude oil inventories not long after.

In company news, just five companies are expected to report their half-yearly reports, including heavyweight financial firms Admiral and Aviva.



Wednesday 16 August

INTERIMS

Admiral Group, Aviva, Balfour Beatty, Essentra, Marshalls

INTERIM DIVIDEND PAYMENT DATE

Shoe Zone

INTERIM EX-DIVIDEND DATE

Coventry 12 1/8% Perm Int Bearing Shs #1000

QUARTERLY PAYMENT DATE

M Winkworth

QUARTERLY EX-DIVIDEND DATE

Seplat Energy (DI)

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

Building Permits (US) (13:30)

Capacity Utilisation (US) (14:15)

Crude Oil Inventories (US) (15:30)

Housing Starts (US) (13:30)

Industrial Production (EU) (10:00)

Industrial Production (US) (14:15)

MBA Mortgage Applications (US) (12:00)

EGMS

Globaltrans Investment GDR (Reg S)

AGMS

Cadence Minerals, Calnex Solutions , NextEnergy Solar Fund Limited Red, Streaksai

UK ECONOMIC ANNOUNCEMENTS

Consumer Price Index (07:00)

Producer Price Index (07:00)

Retail Price Index (07:00)