LONDON — European stocks are expected to open flat to lower on Thursday as global markets falter following the latest U.S. inflation reading showing consumer prices rose once again in December.

The U.K. FTSEThe index will open at 7.539. Germany’s DAXFrance opens 11 points lower than the previous opening at 16,029 CAC 40 down 9 points at 7,222 and Italy’s FTSE MIBData from IG shows that the number of points was 31 lower at 27,537

On Wednesday, the U.S. released the December consumer price index reading. This gauge measures prices across broad ranges of goods and is being digested globally. increased 7%, according to the Bureau of Labor Statistics.

CPI rose 0.5% monthly. Dow Jones predicts that the Consumer Price Index will rise 0.4% and 7% in December according to economists. 

Some economists believe inflation could be showing signs of peakingThe report will also be closely examined for long-term trends.

While CPI may not be the Federal Reserve’s main inflation indicator, policymakers will continue to monitor many measures while they take the first steps towards tightening some of the most flexible policy measures in central bank history.

Jerome Powell, Fed Chairman, stated Tuesday to Senate legislators that he expects interest rate increases this year along with the end of the monthly bond-buying program in March and a reduction in asset holdings. Powell stated that the measures are likely to be necessary in order to manage inflation during a period when the economy is recovering from the pandemic shock.

Thursday will see the release of another measure, the December producer prices index.

The U.S.’s big banks are in high demand with one of them launching the fourth quarter earnings season Friday. JPMorgan Chase and Citigroup will release their quarterly results prior to the U.S. trading session.

In Europe, earnings come from Geberit while Tesco, Marks & Spencer and ASOS release trading statements and consumer sentiment data is released for the U.K., France and Germany.

— CNBC’s Jeff Cox contributed to this market report.