US inflation data came in above forecasts, rising by its highest annual rate since 2008, but there was little reaction from the bond markets. This week will bring the US Federal Reserve meeting, where we will get an insight into the central bank’s current thinking.

US equity markets crept higher, boosted by strong macro data and led by the energy sector. European markets also advanced, although were held in check by inflationary fears. 

US employment numbers were the focus of financial markets, falling short of consensus forecasts, while agricultural commodity prices soared. This week is forecast to bring a further jump in US headline CPI numbers to 4.7%, as well as the monthly meeting of the European Central Bank.