Daily Economic Outlook: 15th December, 2015

Inflation data for November in U.K. are scheduled to release today. The inflation figures will be in domestic markets' focus. CPI inflation posted negative figures for past two months is expected to rebound this month.

"Although the BRC shop price index suggests that high-street deflation intensified in November, the waning impact of last year's energy price declines should be sufficient to push the headline rate up to 0.1% y/y. At the same time, we expect the core rate to rise from 1.1% y/y to 1.3%", argues Lloyds Bank.

In euro area, German ZEW survey for December will be watched closely. The survey indicated that sentiment about the immediate economic situation reduced to 54.4 in November is expected to remain steady in December also.

"With German GDP growth anticipated to increase by 0.3pp and 0.2pp to 1.8% and 2.0% in 2016 and 2017 respectively, we expect the latter to rise again to 16.0. However, there is a risk of a reversal on the back of disappointment about the ECB's 3 December policy announcement", added Lloyds Bank. 

U.S. CPI inflation data for November is scheduled to release today, which is a day before FOMC's rate hike decision. The inflation figure is expected to increase, but it will not influence the markets' rate hike expectation.