Markets around the world have been volatile today as China’s weak growth data trickled into markets. Today, European markets watchers are working on what European Union inflation figures will mean for the future of the eurozone, expected on Thursday. The Euro risks mixed fortunes until next week with the European Central Bank yet to decide whether to cut rates. Attention has been focused on data from key sectors in the wake of stronger than expected industrial production figures for August.
What are inflation figures?
An inflation figure is a number used to measure changes in the average price of goods and services in a country from one period of time to the next. The number’s rate represents the amount of change during that period, typically an annualized figure. Inflation figures like this are always mixed with economic indicators too. This numbers will show how fast the eurozone is growing and also whether there has been enough growth in Europe as a whole for businesses to invest more. Inflation is such an abstract, confusing concept that it’s difficult to balance all the information with concrete actions. That said, it’s not all about striving for a certain number on the price tag. Inflation measures the general state of affairs and market activity at a given point in time, giving traders a more concrete way to interpret economic trends prior to momentous events on financial markets.
Why the market is awaiting these figures
Traders will look to see if inflation confirmed the pick-up in growth this month, according to Bloomberg. The European Central Bank (ECB) raised its key interest rate for the first time in a decade last week, and expected underlying inflation for this year to be at or above 3 per cent. The betting odds in Germany, Italy, Portugal and Cyprus suggest eagerness to conclude the trading day as market volatility eases. If a consensus is reached that inflation rates went up in April, the markets could seize that news with a great deal of enthusiasm and send the euro surging just days before General Election day in all four countries.
Upcoming eurozone inflation release date and what to expect
Markets were largely muted Wednesday in anticipation of the release of eurozone inflation figures later today. The outlook for today’s publication remains uncertain. Official estimates currently expect the rate to rise from 0.4% in June to 1.2% in July, according to data obtained by Marketwatch. Soon, traders will be able to lay their cards on the table directly ahead of a stakeholder meeting that is set for Thursday. The meeting begins at 11 a.m in Brussels and will see ECB President Mario Draghi’s organisation release its inflation figures later than morning.
The economic forecast
European markets had a muted start to the week on Thursday after worries of falling inflation shook investor confidence. Traders await updated figures from the eurozone for September inflation which are due at 8:30am EST tomorrow. As a buyer or seller, it’s best to conduct your own rigorous research – use sources you trust and look at financial statements, watch driving interest in and out of the market, sign up for alerts on sites like blooomberg.com that clue you into product trends.