Inflation Surges Past Forecasts

Date: January 22, 2026

Inflation Surges Past Forecasts

Summary

Market Snapshot

Prior Close
Asset Level Days Change
S&P 500 6,796.86 0.00%
FTSE 100 10,138.09 +0.11%
UK Natural Gas 3.91 0.00%
2 Year Gilt 3.69 +1 bps
10 Year Gilt 4.46 +0 bps
GBP/USD 1.343 +0.01%
GBP/EUR 1.15 -0.02%
GBP/JPY 213.17 +0.26%
Brent Oil 64.92 0.00%
Gold ($) 4,759.60 0.00%
Bitcoin ($) 89,912.40 +0.61%

Prior Economic Events

Data Prior Cons Actual
Inflation Rate y/y3.203.303.40
Core Inflation Rate y/y3.203.203.20
Inflation Rate m/m-0.200.400.40
CBI Business Optimism Index-31--19
CBI Industrial Trends Orders-32-33-30
BoE Woods Speech---

Upcoming Economic Events

Data Prior Cons Time
CBI Distributive Trades-44-3511:00
GFK Consumer Confidence Index-17-1600:01
Retail Sales m/m-0.10-0.1007:00
Retail Sales y/y0.60107:00
S&P Global Mfg PMI Flash50.6050.7009:30
S&P Global Services PMI Flash51.4051.7009:30
BoE Greene Speech--09:30

Yesterday's Recap

UK inflation rate year-over-year climbed to 3.4%, beating the 3.3% consensus, while core inflation matched expectations at 3.2% and month-over-month rose to 0.4% as anticipated. CBI business optimism surged from -31 to -19, surpassing consensus, alongside industrial trends orders rising from -32 to -30. BoE Woods delivered a speech but no major shifts in tone were noted. Markets remained calm, with FTSE 100 up 0.11% to 10,138.09, 2-year Gilt yields rising 1bps to 3.69%, and GBP/USD ticking up 0.01% to 1.343. Brent oil held at 64.92, gold at 4,759.60, and Bitcoin up 0.61% to 89,912.40.

The Day Ahead

UK retail sales data at 07:00 is expected at -0.1% m/m and 1.0% y/y, watched for consumer spending trends. GFK consumer confidence at 00:01 may show stability, influencing household outlook. CBI distributive trades at 11:00 is forecast at -35, gauging retail sentiment. S&P Global PMI flashes at 09:30 for manufacturing and services could signal growth momentum. BoE Greene speech at 09:30 may clarify easing pace amid inflation pressures.

Other Economic Notes

Slovakia's booming car industry highlights export-led growth in Europe, potentially boosting UK manufacturing ties. India's robust GDP expansion signals emerging market strength, easing global commodity pressures.

Global Macro News (continued)

China's weakening PMI and population decline underscore slowing Asian growth, reducing commodity pull but pressuring global trade. Venezuela's oil deal with the US redirects supplies, benefiting American refineries but diminishing Canada's export leverage, indirectly affecting UK energy costs.

BoE Watch

In the rate-cutting cycle, higher-than-expected inflation supports fewer cuts in 2025, tilting hawkish on pace. MPC may favor slower easing to combat persistent price pressures. Markets price fewer cuts, reflecting data-dependent caution over aggressive reductions. Woods' speech reinforced monitoring without signaling shifts.


Source: https://robomacro.com/Research_Notes/US_Macro_Daily_20260122.html