| Time | Country | Event | Period | Previous value | Forecast | Actual |
|---|
| 07:00 | United Kingdom | Retail Sales (MoM) | December | 0.1% | 0.4% | -0.3% |
| 07:00 | United Kingdom | Retail prices, Y/Y | December | 0% | 4.2% | 3.6% |
| 09:00 | Eurozone | Current account, adjusted, bln | November | 30.2 | 28 | 27.0 |
| 10:00 | Eurozone | Harmonized CPI, Y/Y | December | 2.2% | 2.4% | 2.4% |
| 10:00 | Eurozone | Harmonized CPI ex EFAT, Y/Y | December | 2.7% | 2.8% | 2.7% |
| 10:00 | Eurozone | Harmonized CPI | December | -0.3% | 0.4% | 0.4% |
GBP weakened against most of the other major currencies in the European session on Friday as investors digested the UK’s data, which unexpectedly showed a decline in retail sales in December, reinforcing bets on an interest rate decrease by the Bank of England next month.
The Office for National Statistics (ONS) reported that retail sales in Britain dropped 0.3% MoM last month, following a downwardly revised 0.1% MoM uptick (from +0.2% MoM) in November 2024. The result frustrated economists who had forecast a 0.4% MoM increase for December - the Christmas shopping month. On a YoY basis, the UK retail sales rose 3.6%, below economists’ prediction of a 4.2% advance.
Today’s data came a day after the ONS announced about a lacklustre performance of the UK economy in November, which showed only a 0.1% MoM growth after two months of contraction. This added to fears that the UK is at risk of falling into a prolonged economic stagnation, characterized by persistently high inflation and stagnant economic growth, which could severely impact businesses and households, and heightened expectations that the BoE’s policymakers would cut the Bank Rate when they meet in February.