The economic calendar for the week ahead is well balanced with lot of important tier-I data scheduled from most of the G7 economies.

The week starts off with the UK’s ONS reporting on the monthly inflation figures.

Data from the Eurozone will also see the final inflation report for December.

The Bank of Canada kicks off the New Year with its first monetary policy meeting. No changes are expected at this month’s event.

Australia will be reporting on its employment data on Thursday while China will be releasing the GDP figures on Friday.

UK Inflation expected to stabilize

Economic data from the UK is sparse this week with the exception of the UK’s consumer price index data that will be released.

According to the forecasts, inflation in the UK is expected to remain strong near the 3% level for the year ending December.

This makes it a full percentage point above the BoE’s 2% inflation target rate.

The headline CPI is expected to rise 0.5% on the month in December, accelerating from 0.3% increase seen previously.

On an annual basis, UK’s inflation rate is expected to rise 3.0% for the year ending December.

Core CPI, which strips the volatile food and energy prices are forecast to rise 0.7% on the month.

This follows November’s gains of 1.8%. Core CPI rate is also expected to ease, rising 2.6% on the year, down from 2.7% previously.