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Indonesian Inflation At 18-Month High

Indonesia’s consumer price inflation increased to the highest level in eighteen months in December, data from the statistics bureau showed on Monday.

Consumer prices rose 1.87 percent year-on-year in December, following a 1.75 percent increase in November. Economists had expected a rate of 1.80 percent.

The latest inflation was the highest since June last year, when it was 1.96 percent.

Core inflation was 1.56 percent in December versus 1.44 percent in the previous month. Economists had expected 1.52 percent.

On a monthly basis, consumer prices rose 0.57 percent in December, following a 0.37 percent increase in November. Economists had expected a 0.52 percent rise.

Prices for food, beverages and tobacco rose 1.61 percent yearly in December and prices for clothing and footwear grew by 0.22 percent.

Transportation cost gained 0.62 percent annually and prices for household equipment, equipment, and routine maintenance rose 0.24 percent.

For the January to December period, inflation was 1.87 percent.

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Japan’s Inflation Jumps 0.6% On Year In November

Overall nationwide consumer prices in Japan were up 0.6 percent on year in November, the Ministry of Internal Affairs and Communications said on Friday – beating forecasts for 0.4 percent and up from 0.1 percent in October.

Core CPI, which excludes volatile food prices, climbed an annual 0.5 percent – also exceeding expectations for 0.4 percent and up from 0.1 percent in the previous month.

Individually, prices were higher for food, housing, fuel, furniture, clothing and recreation; they were lower for medical care, transportation and communication.

On a seasonally adjusted monthly basis, overall inflation and core CPI both rose 0.3 percent.

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FTSE 100 Subdued As Economic Recovery Slows

U.K. stocks were moving lower on Wednesday after revised data showed the U.K. economy expanded less than estimated in the third quarter.

Gross domestic product grew 1.1 percent sequentially, instead of 1.3 percent estimated previously. This follows a revised increase of 5.4 percent in the second quarter.

The level of GDP was 1.5 percent below where it was pre-coronavirus at the fourth quarter of 2019, revised down from the prior estimate of 2.1 percent.

Annual GDP decreased 9.4 percent in 2020, revised from the first quarterly estimate of negative 9.7 percent.

Another report from the ONS showed that the current account deficit widened to GBP 24.4 billion, or 4.2 percent of GDP in the third quarter.

The benchmark FTSE 100 slid 13 points, or 0.2 percent, to 7,285 after rising 1.4 percent on Tuesday.

Miners were flat to slightly lower as iron ore futures declined on possible Covid-19 curbs in China.

NewRiver REIT, a real estate investment trust, gained 0.6 percent. The company said it has exchanged contracts for the disposal of its Regeneration Shopping Centre in Cowley, Oxford to Redevco B.V., a real estate investment manager and developer, for gross proceeds of 38.8 million pounds.

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European Economics Preview: UK Revised GDP Data Due

Revised quarterly national accounts data from the UK is due on Wednesday, headlining a light day for the European economic news.

At 2.00 am ET, the Office for National Statistics releases UK revised quarterly GDP data. The economy is forecast to grow 1.3 percent sequentially in the third quarter, after rising 5.5 percent in the second quarter.

At 2.45 am ET, the French statistical office Insee is slated to release producer prices for November. Economists expect producer prices to climb 2.5 percent on month, following a 2.9 percent rise in October.

At 3.00 am ET, producer prices data from Spain and final foreign trade data from Hungary are due.

Half an hour later, Statistics Sweden releases producer prices and retail sales data for November. Economists expect sales to fall 0.4 percent on month, offsetting the 0.4 percent rise in October.

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BoJ Minutes: Stimulus To Continue Until Price Stability

Members of the Bank of Japan’s Monetary Policy Board said that the country’s economy is trending in a positive direction but remains at risk due to Covid-19 and its variants, minutes from the bank’s meeting on October 27 and 28 revealed on Wednesday.

To that end, the members said the central bank will continue its current favorable monetary policy until the country reaches its price stability target of 2 percent. Interest rates will remain at current levels for the time being, and the members did not rule out additional stimulus if they deemed it necessary.

They added that the depreciation of the yen has positively affected Japan’s economy through higher stock prices and an increase in profits.

At the meeting, the BoJ maintained its monetary stimulus and downgraded its growth outlook for the current fiscal year as supply-side constraints dampened production and exports amid weak consumption.

The board voted 8-1, to hold the interest rate at -0.1 percent on current accounts that financial institutions maintain at the central bank. The bank will continue to purchase a necessary amount of Japanese government bonds without setting an upper limit so that 10-year JGB yields will remain at around zero percent.