UK inflation figures and annual results from Marks and Spencer (M&S) will take centre stage on Tuesday.
The UK's consumer price index (CPI) rose by 1.7% year-on-year in April, data due out tomorrow from ONS is expected to show, according to the consensus.
Nonetheless, so-called 'base effects' associated with an early Easter in 2013 and increases in fuel prices and transport costs may see a print of 1.8%, Barclays Research believes, close to the 1.9% level at which it sees CPI ending the year.
Forecasts from the Monetary Policy Committee point to CPI at 1.9% at the start of 2017.
The retail price index (RPI) is expected to edge higher, towards a rate of 2.6% year-on-year, bolstered by strong house price growth, although as Governor Carney explained just last Sunday, the Bank may yet adopt further measures to restrain house prices.
In the earnings session M&S is forecast to report a drop in underlying pre-tax profits from £665m to £615m as the UK retailer tries restructures the business.
In the fourth quarter the company posted a fall in food like-for-like sales due to the timing of Easter but a rise in the struggling clothing division.
"With capital expenditure set to normalise from 2014/15 as the bulk of the infrastructure investment reaches its conclusion, the shares
look inexpensive, particularly from a forward cash flow perspective," Numis said.
"However, having now posted 11 consecutive quarters of negative general merchandise like-for- likes, despite the better trend, we remain unconvinced by the improvement in the general merchandise division."
Tuesday May 20th
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INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Producer Price Index (GER) (07:00)
Speech President Philadelphia Fed
Speech President New York Fed
Industrial orders (IT) (09:00)
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Index all-industry activity (JP) (14:30)
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