Industrial Output in China Increased 6.0% in May

Consumer prices in Germany edged higher, rising 0.10% on a yearly basis, offsetting the -0.10% declines in April, according to data from statistics agency Destatis. On a month over month basis, German CPI was up 0.30%, compared to 0.40% decrease seen in April. In a separate report from Destatis on Friday, wholesale prices in Germany declined at a slower than expected pace in May after the 2.70% drop in April. Germany's wholesale prices have been steadily declining since July 2013 with April's decline marking the smallest in over four months – a good sign for the important metric.

Consumer inflation expectations, in a survey by the University of Michigan on Friday showed that consumers in the US expect inflation to rise at a pace of 2.30% over the next 5-year period. The expectation is one of the lowest on record in the survey’s history. The university’s inflation expectations are seen as a key factor among policy makers, with the US Federal Reserve meeting this week to decide on interest rates. According to various Fed officials speaking a few weeks ago, most mentioned that inflation expectations need to stabilize to bolster confidence among policy makers that price growth will strengthen in coming years.