ECONOMIC data will be the focal point next week as the London market attempts to pull out of its recent tailspin.

With little in the way of company results, inflation and retail sales figures should be keenly watched.

Data on Tuesday is expected to show a fall in the rate of underlying inflation from the April level of 2.3 per cent.

Last year's May return was affected by large increases in seasonal food prices and a sharp jump in petrol prices.

The Bank of England left the cost of borrowing unchanged earlier this month but minutes from the Monetary Policy Committee's rate setting meeting on Wednesday will show how close members came to tightening monetary policy.

Retail sales figures for May should show a slight cooling on Thursday after the spectacular increase a month earlier.

Shoppers took advantage of low prices in April to push sales volumes up 1.7 per cent on the previous month - the biggest jump since the Millennium.

EasyJet's takeover of low-cost rival Go reaches a crucial stage on Monday when shareholders meet in Luton to vote on a proposed rights issue.

The budget carrier intends to raise £276.7m through the offer of new shares, while the remainder of the £374m price tag for Go will be met from existing easyJet coffers.

The company hopes to tie up the merger - which will see it leapfrog rival Ryanair in size - by July 1 if shareholders approve the rights issue and European regulators do not register objections.

JD Sports's acquisition of the First Sport chain from Blacks Leisure will provide the most interest to investors at its full-year results announcement on Thursday.

The World Cup should have helped sales in recent weeks, with analysts expecting full-year pre-tax profits in the region of £19.6m, an improvement on the £16.5m recorded a year earlier.