Pay Attention To US CPI Inflation This Week
Last week, the US Nonfarm Payrolls rose by 199,000 last month, well short of the 400,000 estimate. However, the US unemployment rate falling to 3.9% against expectations of 4.1% while earnings rose by 0.6%, indicating tightness in the labor market.
Federal Reserve meeting minutes pointed to a faster-than-expected rise in U.S. interest rates due to concerns about persistent inflation.
Fed policymakers said at their December meeting that a very tight job market and unabated inflation might require it to raise interest rates sooner than expected and begin reducing its overall asset holdings as a second brake on the economy, according to minutes from that meeting.
In the upcoming week, the U.S. consumer price index will release Wednesday.
US Consumer prices are expected to have risen 0.4% last month and 7% over the prior year, according to estimates. Excluding the cost of food and fuel, core inflation is projected to be 5.4% on a year-over-year basis.
We will also closely watch the US PPI inflation on Thursday. The data is expected to ease to 0.4% from 0.8%.
Additionally, the US Commerce Department will report October retail sales numbers on Friday. Economists predict that retail sales fall by -0.1% last month. On the other hand, Core retail sales, which exclude autos, are expected to have risen by 0.2%. A higher-than-expected reading should be taken as positive for the greenback
10 Jan 22 (Mon)
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