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US inflation accelerates to 2.6% in October
The US consumer price index rose to 2.6% in October, according to analysts’ expectations. Economists polled by Dow Jones had forecast the CPI rising 0.2% on a monthly basis and 2.6% on a yearly basis.
Investors will also be looking ahead to the producer price index data for October, due out on Thursday.
Federal Reserve Chairman Jerome Powell is scheduled to give a speech later in the week, which investors will be watching closely for clues on future monetary policy. Data on retail sales and industrial production will also be released on Friday.
Also read: Gold prices rise slightly ahead of US inflation data
“This is a busy week with consumer prices, producer prices, retail sales. All of these data could indicate that the economy is still strong,” Scott Helfstein, chief investment officer at Global XETFS, told CNBC.
He added that markets may be less sensitive to data this week after the election and the Federal Reserve’s decision to cut interest rates last week.
Last week, bond yields jumped after President-elect Donald Trump’s victory, on expectations that his pro-business policies and tax cuts could boost economic growth. However, economists also expect those policies to lead to higher inflation.
