Tuesday preview: UK inflation expected to pick up in February

UK inflation will be in focus on Tuesday amid concerns about the impact of weak prices on the economy.

The consumer price index is expected to have risen 0.4% in February compared to the same time a year ago, marking an improvement on the previous month’s 0.3% year-on-year gain.

On a month-on-month comparison, CPI is forecast to have increased 0.4% in February compared to a 0.8% decline in January.

The main drivers of prolonged low inflation have been food and energy.

Fierce competition between supermarkets has forced food prices lower while a persistent slump in oil prices has affected fuel costs.

The Bank of England, which is targeting 2% inflation, last Thursday decided to keep interest rates unchanged at 0.5% amid price pressures, a slowdown in the global economy and weak wage growth.

In the Office for Budget Responsibility’s report published alongside the UK Budget on Wednesday, the Treasury watchdog said the outlook for interest rates in the UK has changed ”significantly” in recent months.

“Our forecast is consistent with the Bank Rate being reduced below 0.5% for some of the next two years,” the OBR’s report said.

The OBR also cut its forecasts for inflation in 2016 from 1% to 0.7%.

Craig Erlam, senior market analyst at Oanda, said the CPI figures will be “followed very closely for signs that the economy is stalling and more assistance is needed from the central bank, a possibility that we’re already hearing murmurings of, despite the rhetoric remaining that the next move is more likely higher than lower for rates”.

Tuesday 22 March

INTERIMS
Bellway, Haydale Graphene Industries, Infrastrata, Wolseley, Xeros Technology Group

INTERIM DIVIDEND PAYMENT DATE
Rank Group

INTERNATIONAL ECONOMIC ANNOUNCEMENTS
House Price Index (US) (13:00)
IFO Business Climate (GER) (09:00)
IFO Current Assessment (GER) (09:00)
IFO Expectations (GER) (09:00)

FINALS
888 Holdings, Augean, e-Therapeutics, Gamma Communications, Gulf Marine Services, Hydrogen Group, IFG Group, IQE, Jimmy Choo , Johnston Press, NAHL Group, S&U, Science In Sport, Source BioScience, Synairgen, Synety Group, Toumaz Limited

ANNUAL REPORT
Synety Group

AGMS
Ediston Property Investment Company, Electronic Data Processing, Wynnstay Group

TRADING ANNOUNCEMENTS
Thomas Cook Group, United Utilities Group

UK ECONOMIC ANNOUNCEMENTS
Consumer Price Index (09:30)
Producer Price Index (09:30)
Retail Price Index (09:30)

FINAL DIVIDEND PAYMENT DATE
Judges Scientific, New Europe Property Investments