Data out tomorrow is expected to show that the UK experienced unchanged consumer prices year-on-year in April, as was the case in both March and February – although it is possible that the data could reveal deflation. Howard Archer at IHS Global said it was possible that the UK experienced marginal deflation in April, but this was “probably avoided largely due to a strengthening in oil prices”. He said the firming in oil prices means “there is now a good chance that the UK will end up dodging deflation”.
The corporate outlook for the week includes reports from Babcock International Group and Cranswick today. Aveva, Bloomsbury Publishing, Homeserve, Icap and Vodafone will update the market tomorrow, while numbers from Burberry Group, Cable & Wireless and Marks & Spencer are expected on Wednesday.
On Thursday, Investec, National Grid and Royal Mail will report, and Close Brothers, Mothercare and Severn Trent will release figures on Friday.