Euro zone CPI for April is expected to increase 0.3% month-over-month, and annualized data is expected to show a 3.3% increase. Expectations are for UK CPI to increase 0.5% month-over-month and increase 2.6% year-over-year.

Global Insight chief European and UK economist Howard Archer agreed that CPI in the UK is likely on its way up in the coming months.

"We expect consumer price inflation to have climbed to a 12-month high of 2.7% from 2.5% in March, pushed up by rising utility bills and elevated food prices as well as unfavourable base effects (inflation retreated significantly in April 2007)," he wrote. "It seems highly likely that consumer price inflation will reach at least 3.0% in the summer, before starting to fall back as softer growth dilutes underlying inflationary pressures."

Regarding additional European CPI reports for April, French and Italian CPI data will be released on Wednesday with markets receiving Germany's on Thursday. French CPI is expected to post a 0.4% month-over-month increase. Annualized French CPI is expected to increase 3.1%. Italian CPI is expected to increase 0.1% month-over-month and increase 3.3% year-over-year. German CPI is expected to decrease 0.2% in the month and post a 2.6% annualized increase.

German GDP, scheduled to be released in tandem with its CPI report on Thursday, is expected to post a first-quarter 0.7% preliminary increase. Annualized German GDP (WDA) is expected to increase 1.8% for the first quarter. French and euro zone GDP reports are also due out on Thursday. French first-quarter GDP is expected to increase 0.5% quarter-over-quarter and increase 1.9% year-over-year.

Expectations from Capital Economics were in line with consensus forecasts for euro zone GDP calling for a 0.5% quarterly increase and a 1.9% annualized incline.

"The flash estimate of GDP in Q1 is likely to reveal that the euro-zone economy grew at a reasonable clip in the early months of this year," economists from the company wrote to clients in a research note. "In particular, the monthly industrial production figures suggest that output in that sector expanded by around 0.8% compared to the 0.3% gain seen in Q4. Admittedly, survey evidence such as the PMI suggests that the services sector probably expanded by a pretty modest 0.2% or so. But this survey excludes the retail sector, which appears to have fared a bit better than in Q4. Overall, we expect GDP to have expanded by 0.5% compared to Q4 last year. This would see the annual growth rate slow from 2.2% to 1.9%, but nonetheless leave the economy on track to expand by a relatively solid 1.7% or so in 2008 as a whole."

In addition, among other important data this week, UK retail price index data is scheduled to be released on Tuesday while euro zone industrial production figures are scheduled to be released on Wednesday. The monthly UK retail price index is expected to show a 0.6% increase while the index is expected to increases 3.9% on a year-over-year pace. European industrial production is expected to sustain a 0.2% month-over-month decrease, while expectations are for a 2.4% year-over-year increase.

All times in EDT

Monday: It's a busy start to the weak with the release of Italy's industrial production report for March and UK's producer price index for April. The day is also busy with three ECB speakers.

Italy's industrial production is expected to be unchanged following a prior fall of 0.2%. The annualized rate (NSA) is expected to fall 4.6% following February's rise of 2.9%.

In the UK, the producer price core outputs for the month are expected to rise 0.3% following February's rise of 0.3%. The annualized core index is expected to show a 3.2% rise following February's 3.1% rise.

4:00 EU Italy Industrial Production (SA) (Monthly) March Exp: unchanged Prior: -0.2%

4:00 EU Italy Industrial Production (WDA) (Annualized) March Exp: -1.0% Prior: -0.8%

4:00 EU Italy Industrial Production (NSA) (Annualized) March Exp: -4.6% Prior: +2.9%

4:30 UK Producer Price Index Input (SA) (Monthly) April Exp: +1.8% Prior: +1.8%

4:30 UK Producer Price Index Input (NSA) (Annualized) April Exp: +21.4% Prior: +20.6%

4:30 UK Producer Price Index Output (NSA) (Monthly) April Exp: +0.6% Prior: +0.9%

4:30 UK Producer Price Index Output (NSA) (Annualized) April Exp: +6.4% Prior: +6.2%

4:30 UK Producer Price Index Output Core (SA) (Monthly) April Exp: +0.3% Prior: +0.3%

4:30 UK Producer Price Index Output Core (NSA) (Annualized) April Exp: +3.2% Prior: +3.1%

4:30 UK Visible Trade Balance GBP/M March Exp: -£7500 Prior: -£7487

4:30 UK Trade Balance Non EU GBP/M March Exp: -£4000 Prior: -£4023

4:30 UK Total Trade Balance GBP/M March Exp: -£4400 Prior: -£4439

6:45 EU ECB's Gonzalez-Paramo Holds Speech in Madrid

11:00 EU ECB President Trichet, UniCredit's Profumo Attend Conference

19:01 UK BRC April Retail Sales Monitor

19:01 UK RICS House Price Balance April Exp: -80.0% Prior: -78.5%

12-May EU Italy Bank of Italy Releases March Public Finance Supplement

12-May EU Italy Bank of Italy's Draghi Attends a Conference

Tuesday: It's a big day in the UK with the release of inflation data for April. The CPI report is expected to show a rise 0.5% following March's increase of 0.4%. The annualized rate is expected to tick up to 2.6% following March's increase of 2.5%.

The UK retail price index is expected to rise 0.6% following a 0.3% jump in March. The consensus for the annualized rate is for a 3.9% increase following a 3.8% increase in the previous month.

2:45 EU France Current Account March Prior: €-0.6B

4:30 UK Consumer Price Index (Monthly) April Exp: +0.5% Prior: +0.4%

4:30 UK Consumer Price Index (Annualized) April Exp: +2.6% Prior: +2.5%

4:30 UK Core Consumer Price Index (Annualized) April Exp: +1.3% Prior: +1.2%

4:30 UK Retail Price Index April 213.3 Prior: 212.1

4:30 UK Retail Price Index (Monthly) April Exp: +0.6% Prior: +0.3%

4:30 UK Retail Price Index (Annualized) April Exp: +3.9% Prior: +3.8%

4:30 UK Retail Price Index Ex Mort International Payments (Annualized) April +3.6% Prior: 3.5%

4:30 UK DCLG UK House Prices (Annualized) March Exp: +4.5% Prior: +6.7%

6:10 EU ECB's Noyer, Fed's Pianalto Speak in Paris

Wednesday: It's another busy day for inflation data, this time in France and Italy.

France's CPI report for April is expected to increase to 0.4%, down from March's increase of 0.8%. The annualized rate is also expected to come in a little bit lower with an increase of 3.0%, down from March's rise of 3.2%. The harmonized inflation rate is expected to rise 3.4% following a prior rise of 3.5%.

Italian inflation is expected to show a steady increase for the month of 0.1% following March's increase of 0.1%. The annualized rate is expected to increase 3.3% following March's increase of 3.3%. The harmonized rate is expected to rise 0.5%, down from a 1.6% increase in March. The annualized rate is expected to show an increase of 3.5%, down from a 3.6% rise the previous month.

Finally in the UK, markets will receive important employment data. The UK jobless claims are expected to remain unchanged following a decline of 1,200 jobs in March. The claimant count rate is expected to remain steady at 2.5%.

2:40 EU France Consumer Price Index (Monthly) April Exp: +0.4% Prior: +0.8%

2:40 EU France Consumer Price Index (Annualized) April Exp: +3.0% Prior: +3.2%

2:40 EU France Consumer Price Index - EU Harmonised (Monthly) April Exp: +0.4% Prior: +0.8%

2:40 EU France Consumer Price Index - EU Harmonised (Annualized) April Exp: +3.4% Prior: +3.5%

2:40 EU France Consumer Price Index Ex Tobacco Index April Exp: 117.8 Prior: 117.46

2:50 EU France April Survey of Industrial Investment

4:00 EU Italy Consumer Price Index (NIC including tobacco) (Monthly) April Final Exp: +0.1% Prior: +0.1%

4:00 EU Italy Consumer Price Index (NIC including tobacco) (Annualized) April Final Exp: +3.3% Prior: +3.3%

4:00 EU Italy Consumer Price Index - EU Harmonized (Monthly) April Final Exp: +0.5% Prior: +0.5%

4:00 EU Italy Consumer Price Index - EU Harmonized (Annualized) April Final Exp: 3.5% Prior: 3.5%

4:30 UK Claimant Count Rate April Exp: 2.5% Prior: 2.5%

4:30 UK Jobless Claims Change April Exp: 0.0k Prior: -1.2k

4:30 UK Avg Earnings inc bonus 3month/(Annualized) March Exp: +3.7% Prior: +3.7%

4:30 UK Avg Earnings ex bonus 3month/(Annualized) March Exp: +3.8% Prior: +3.8%

4:30 UK ILO Unemployment Rate (3 months) March Exp: +5.2% +5.2%

4:30 UK Manufacturing Unit Wage Cost (3months/(Annualized)) March Prior: +0.8%

5:00 EU Euro-Zone Industrial Production (SA) (Monthly) March Exp: -0.3% Prior: +0.3%

5:00 EU Euro-Zone Industrial Production (WDA) (Annualized) March Exp: +2.3% Prior: +3.1%

5:30 UK Bank of England Quarterly Inflation Report

14-May EU IMF's Strauss-Kahn Addresses Parliament on Financial Crisis

14-15 May EU EU's Almunia, ECB's Papademos Speak at Economic Forum

Thursday: Markets will receive preliminary German first quarter GDP and advanced first-quarter GDP for the euro zone. Markets will also receive German and European inflation data.

Economists forecast German GDP to rise 0.7% for the first quarter following a 0.3% rise in the previous quarter. The consensus for the annualized GDP is for a steady increase of 1.6%.

European advanced GDP is expected to rise 0.5% in the first quarter following a 0.4% rise the previous month. The annualized rate is forecasted to rise 1.9%, down from the previous rise of 2.1%.

European inflation will still remain a concern for the ECB with the annual rate above the bank's target. Inflation is expected to rise 3.3%, down from the previous rate of 3.6%.

German inflation is expected to show a steady rise in the annualized rate of 2.4% following the prior rise of 2.4%.

2:00 EU Germany GDP (SA) (Quarterly) 1Q Preliminary Exp: +0.7% Prior: +0.3%

2:00 EU Germany GDP (WDA) (Annualized) 1Q Preliminary Exp: +1.8% Prior: +1.8%

2:00 EU Germany GDP (NSA) (Annualized) 1Q Preliminary Exp: +1.6% Prior: +1.6%

2:00 EU Germany Consumer Price Index (Monthly) April Final Exp: -0.2% Prior: -0.2%

2:00 EU Germany Consumer Price Index (Annualized) April Final Exp: +2.4% Prior: +2.4%

2:00 EU Germany Consumer Price Index - EU Harmonised (Monthly) April Final Exp: -0.3% Prior: 0.5%

2:00 EU Germany Consumer Price Index - EU Harmonised (Annualized) April Final Exp: +2.6% Prior: +2.6%

2:45 EU France Gross Domestic Product (Quarterly) 1Q Preliminary Exp: +0.5% Prior: +0.4%

2:45 EU France Gross Domestic Product (Annualized) 1Q Preliminary Exp: +1.9% Prior: +2.1%

4:00 EU ECB Publishes May Monthly Report

5:00 EU Euro-Zone GDP (SA) (Quarterly) 1Q Advanced Exp: +0.5% Prior: +0.4%

5:00 EU Euro-Zone GDP (SA) (Annualized) 1Q Advanced Exp: +1.9% Prior: +2.2%

5:00 EU Euro-Zone Consumer Price Index (Monthly) April Exp: +0.3% Prior: +1.0%

5:00 EU Euro-Zone Consumer Price Index (Annualized) April Exp: +3.3% Prior: +3.6%

5:00 EU Euro-Zone Consumer Price Index - Core (Annualized) April Exp: 2.0% Prior: +2.0%

5:00 SW SNB's Jordan speaks on Finance

7:40 EU ECB's Trichet Speaks in Vienna

9:00 EU ECB's Mersch Speaks in Vienna

17:00 EU ECB Council Member Liikanen Speaks in Brussels

Friday: The week ends with European trade balance data for March, which rose €2.1B in February.

Markets will also receive France's preliminary first quarter employment data, which is expected to rise 0.3% following a 0.3% rise in the previous quarter. Wages are expected to rise 0.8% following a previous increase of 0.3%.

2:00 EU 25 New Car Registrations April Prior: -9.5%

2:45 EU France Wages (Quartly) 1Q Preliminary Exp: +0.8% Prior: +0.3%

2:45 EU France Non-Farm Payrolls (Quartly) 1Q Preliminary Exp: +0.3% Prior: +0.3%

4:00 EU Italy Trade Balance (Total) (Euros) March Exp: -860.0M Prior: -408.0M

4:00 EU Italy Trade Balance (Euros) March Exp: 377.5M Prior: 905.0M

4:15 EU ECB's Constancio Speaks at Conference in Lisbon

5:00 EU Euro-Zone Trade Balance March Exp: 2.5B Prior: 0.8B

5:00 EU Euro-Zone Trade Balance (SA) March Prior: 2.1B

13:00 EU Bundesbank's Remsperger Holds Speech in Bad Homburg

By Neils Christensen, This email address is being protected from spam bots, you need Javascript enabled to view it , edited by Cristina Markham, This email address is being protected from spam bots, you need Javascript enabled to view it