Coffee Prices Set to Espresso Themselves Higher: 12 February 2025
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Market Mood
This week, all eyes are on the US as consumer price inflation data is set to be released, with analysts forecasting a 0.3% rise in core inflation. Jerome Powell’s testimony will follow, offering further clues about the Fed’s monetary policy stance, especially as strong economic growth and stubborn inflation have kept interest rates steady. Key data on manufacturing output and retail sales will determine if last year’s economic momentum persists, while a robust labor market has fueled speculation that rates may stay elevated. Meanwhile, in the UK, GDP data takes center stage after the Bank of England slashed its 2025 growth forecast, with concerns over economic weakness prompting discussions of further rate cuts. Business sentiment has worsened, hiring has slowed, and uncertainty is rising, increasing pressure on the central bank to take more aggressive action to support the economy.