DAVY VIEW

In a relatively light week for economic data releases, attention will fall on US inflation expectations and consumer price inflation. Recession fears have increased at the same time as an expected rise in inflation, indicating possible stagflation. By contrast in the euro area, last week’s policy shift by the new German government has galvanised the outlook for economic growth. UK economic activity for January is scheduled for Friday morning; this will be monitored for weakness that has long been evident in surveys but so far not in harder data. The Taoiseach’s visit to the White House on Wednesday is the main event this week from an Irish point of view in an otherwise quiet week for notable data releases here.