Oil sitting at its highest level for seven months

Oil prices on the up

After a treacherous start to 2016, oil is regaining its momentum, sitting at its highest level for seven months. Many believe that inflationary pressures may be building as oil prices surge towards the $50 a barrel mark. With Goldman Sachs stating that the world is in fact consuming more crude oil than what is currently being produced, the upward trend in prices could be on the horizon.
 
All eyes on the UK inflation data

Today, all eyes will be on the UK inflation data which is forecasted to remain at 0.5% in April. Last month the higher than expected figure was driven by a rise in airfares, however, economists believe that was due to hiked prices over the Easter festivities. A higher reading today could see the pound drive higher as well as increase speculation about whether or not the BOE will look at raising interest rates after the EU referendum.
 
Expected increase of the US inflation figures

Across the pond this afternoon, we have the US inflation report for April. The figure is expected to show a slight increase as the US central bank watches closely, following their interest rate late last year. With the input of a quarter point rise from the Fed, and Fridays retail sales figures coming out significantly stronger than expected, they are still predicted to keep a cautious tone to steady their economy.