The Office for National Statistics (ONS) reported that the UK's GDP declined by 0.3% in the fourth quarter of 2023, confirming the country's technical recession. However, UK retail sales jumped by 3.4% in January, and the annual growth in regular earnings was 6.2% in October to December 2023. In the US, CPI inflation declined to 3.1% in January, and US producers increased prices at a faster rate than forecast. Eurozone GDP growth flatlined in the fourth quarter of 2023, and Japan's GDP contracted by 0.1% in the same period, confirming a technical recession.
In the UK, the CPI inflation remained at 4% in January, beating economist expectations, while UK house prices dropped 1.4% over the 12 months to December 2023. The US saw a decline in CPI inflation to 3.1% in January, and US producers increased prices at a faster rate than forecast in the same month. Eurozone GDP growth flatlined in the fourth quarter of 2023, and Japan's GDP contracted by 0.1% in the same period, confirming a technical recession. The Bank of Russia held interest rates at 16%, after five consecutive increases since last summer, following the full-scale invasion of Ukraine.
The UK's economic data continued to paint a confusing picture, with retail sales jumping in January but house prices dropping over the year. In the US, the decline in CPI inflation and the increase in producer prices indicated ongoing inflationary pressures. Eurozone's flatlined GDP growth and Japan's confirmed technical recession highlighted the economic challenges in these regions. The Bank of Russia's decision to hold interest rates at 16% reflected the volatility in the country's economic landscape following the invasion of Ukraine.