Inflation indicators coming up later this week in the US: PPI, CPI

<p>The US labour market is strong, as evidenced by the upside surprise in the NFP last week:</p><ul><li><a href="https://www.forexlive.com/news/forexlive-americas-fx-news-wrap-6-oct-stronger-nonfarm-payroll-shrugged-off-by-the-market-20231006/" target="_blank" rel="follow" data-article-link="true">Forexlive Americas FX news wrap 6 Oct. Stronger nonfarm payroll shrugged off by the market</a></li></ul><p>Eyes now turn to inflation with:</p><ul><li>September PPI due on Wednesday at 8.30am US Eastern time </li><li>September CPI due on Thursday at 8.30am US Eastern time </li></ul><p>There are also less direct indications due from:</p><ul><li>The September inflation expectations in the Atlanta Fed’s business inflation expectation report at 1000 US Eastern time on Wednesday</li><li>The University of Michigan survey of consumers at 1000 US Eastern time on Friday.</li></ul><p>Inflation data will shape the outlook for Federal Open Market Committee (FOMC) monetary policy:</p><ul><li>the recent move higher for energy costs are likely to have spilled into underlying inflation, but on the other hand other inflationary pressures may be easing. </li><li>more evidence about the lagged effects of past rate hikes should be evident also</li></ul><p>In-line or lower inflation figures will support the FOMC extending its pause in rate hikes after the October 31-November 1 meeting. And, of course, higher could see another hike this year, especially given the resiliency of the jobs market. </p><p>I'll be back tomorrow with a preview of the PPI, and then Thursday for the CPI. </p>

This article was written by Eamonn Sheridan at www.forexlive.com.