In the euro area German and Spanish HICP will give the first set of information aboutinflation in June. German HICP declined to 0.6% y/y in May where a large part of thedecline was a result of lower core inflation driven by a decline in package tours andwe expect some rebound in core inflation in June. The increase in the oil price in Juneis likely to result in a smaller decline in energy price inflation. Nevertheless, we onlyexpect an increase in German inflation to 0.7% y/y as the downtrend in foodconsumer prices is expected to continue.
We expect a small upward revision to UK GDP in Q1 to 0.9% q/q due to an upwardrevision to construction output.
In the US we will get more information about consumer sentiment with the release ofthe final version of the University of Michigan confidence index. In line withconsensus we expect an increase to 82.
Release of retail sales and unemployment figures in Sweden and Norway respectivelywill be the focal point in the Scandi market today.
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