In the latest economic news, US inflation is expected to have slowed down at the end of the third quarter, providing some relief to the Federal Reserve as it focuses more on supporting the labor market. The consumer price index is anticipated to have risen by 0.1% in September, marking its smallest increase in three months. Compared to the same time last year, the CPI is projected to have increased by 2.3%, which is the slowest pace since early 2021.
The core inflation rate, which excludes volatile food and energy prices, is expected to have increased by 0.2% from the previous month and by 3.2% compared to September 2023. This measure provides a better view of underlying inflation trends. The gradual moderation in inflation, coupled with strong job growth reported for September, suggests that policymakers at the Fed may opt for a smaller interest rate cut when they meet next on November 6-7.
Federal Reserve Chair Jerome Powell has indicated that officials are likely to implement quarter-point rate cuts at the final two meetings of the year. The CPI and producer price index reports are key inputs for the Fed’s preferred inflation measure, the personal consumer expenditures price index, which will be released later this month.
In other economic news, the University of Michigan will issue its preliminary October consumer sentiment index, and the Fed will release minutes from its September meeting. Additionally, central banks in countries such as New Zealand, South Korea, and Kazakhstan may announce rate cuts. France will unveil its budget, and the European Central Bank will publish minutes from its September policy meeting.
The upcoming week will also see the release of the final jobs report in Canada before the next Bank of Canada rate decision. This data will be crucial for Governor Tiff Macklem as he evaluates the state of the labor market. Surveys of business and consumer expectations for economic growth and inflation will also be published by the central bank.
Overall, the global economy is facing a mix of challenges and opportunities, with central banks around the world closely monitoring inflation, economic growth, and market conditions to make informed policy decisions. Stay tuned for more updates on these developments as they unfold.
Sources:
– Bloomberg
– Federal Reserve
– Bureau of Labor Statistics
– Bank of Canada
– European Central Bank
– Reserve Bank of New Zealand
– Bank of Korea
– Bank of India
– Kazakhstan Central Bank
– Reserve Bank of Australia
– Bank of England
– Riksbank
– Bank of Israel
– National Bank of Serbia
– Banxico
– Central Bank of Argentina
