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Global Economy Week Ahead: Japan and Germany GDP, U.S. and U.K. Inflation

12 Nov 2017 8:00 pm
By WSJ Staff 

This week, Japan, Germany and Italy release gross domestic product figures, while consumer-price readings from the U.S. and U.K. will signal if those countries' central banks are moving closer to hitting their inflation targets.

TUESDAY: Germany and Italy release gross domestic product figures for the third quarter, rounding out a European picture that points to a slight slowdown from a robust first half of the year. As with the eurozone as a whole, the German economy is estimated by economists to have decelerated modestly during the period, while remaining on course for what would be a good year by recent standards. The Italian economy is estimated to have sustained its recent pickup for a fourth straight quarter, an encouragement for the European Central Bank as it prepares to ease back on its stimulus programs.

The U.K.'s statistic agency releases October consumer-price inflation, following the Bank of England's decision to raise interest rates for the first time in a decade earlier this month. Inflation in the U.K. has accelerated following the pound's after the Brexit vote last year, squeezing consumer spending and damping growth in the largely domestic-driven economy. Economists polled by The Wall Street Journal expect inflation rose to 3.1% in October, up 0.1 percentage point from September and well above the BOE's 2% target.

WEDNESDAY: Japan releases GDP figures for the July-September period (release time is Tuesday evening in the U.S.). The numbers are expected to show the country's seventh straight quarter of growth. The healthy economy helped Prime Minister Shinzo Abe's ruling party win a strong majority in parliamentary elections last month, and Mr. Abe is now looking to the longer term with measures to help more women enter the workforce. But despite the robust economic picture, Japan's inflation rate has remained well below the central bank's 2% target.

The U.S. Labor Department releases October consumer-price index figures, after prices rose 0.5% in September because of higher gas costs. Underlying inflation appeared tame, potentially raising questions for Federal Reserve policy makers who have been waiting for signs of rising inflation before lifting interest rates for a third time this year. At their September meeting, Fed officials penciled in a rate increase later this year, and the central bank's last policy meeting of 2017 is scheduled for mid-December.

THURSDAY: Bank Indonesia releases a policy statement, after the central bank surprised markets with quarter-point reductions in both August and September before deciding to stay on hold last month. Inflation eased in October, but that may not prompt Bank Indonesia to cut rates in November, analysts say.

(END) Dow Jones Newswires

November 12, 2017 15:00 ET (20:00 GMT)

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