Week Ahead: All Eyes on US PPI and US CPI

    by VT Markets
    /
    Oct 9, 2023

    Several significant market developments are expected to impact the financial markets this week. In particular, we await the release of the US Consumer Price Index (CPI) and Producer Price Index (PPI). Given the potential impact of these announcements, we strongly recommend traders to exercise caution in their trading preparations, taking into account the possibility of increased market volatility.

    Here are some essential economic highlights to monitor throughout the week:

    US Producer Price Index (11 October 2023)

    Producer prices in the US increased by 0.7% in August 2023, the highest level since June 2022. 

    New PPI data will be released on 11 October, with analysts expecting a 0.3% increase.

    UK Gross Domestic Product (12 October 2023)

    The British economy contracted by 0.5% month-over-month in July 2023, marking the largest decline of the year. This also represented a reversal from the 0.5% growth observed in June. 

    Data for August is scheduled for release on 12 October, with analysts anticipating a 0.2% increase.

    US Consumer Price Index (12 October 2023)

    Consumer prices in the US increased by 0.6% month-over-month in August 2023, following a 0.2% rise in July. 

    Analysts expect a 0.3% increase in the figures for September, which are set to be released on 12 October.

    FOMC Meeting Minutes (12 October 2023)

    During its September 2023 meeting, the Federal Open Market Committee (FOMC) maintained the target range for its funds rate at a 22-year high of 5.25%–5.5%, following a 25 bps hike in July. 

    The central bank signalled the possibility of another rate hike later this year, following potential meetings in November or December 2023.

    University of Michigan Consumer Sentiment Index (13 October 2023)

    The University of Michigan Consumer Sentiment Index for the US increased to 68.1 in September 2023.

    Analysts expect the index to drop to 67.4 in the next set of published data.

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