2024.03.1112:33:00UTC+00Consumer, Producer Price Inflation Data To Be In The Spotlight This Week

After a relatively quiet start, the U.S. economic calendar picks on Tuesday with the release of the Labor Department's closely watched report on consumer prices in the month of February.

Economists currently expect consumer prices to climb by 0.4 percent in February after rising by 0.3 percent in January.

Core consumer prices, which exclude food and energy prices, are expected to rise by 0.3 percent in February following a 0.4 percent increase in January.

Meanwhile, the annual rate of consumer price growth is expected to come in unchanged from the previous month at 3.1 percent, while annual core consumer price growth is expected to slow to 3.7 percent from 3.9 percent.

The consumer price inflation data could have a significant impact on the outlook for interest rates, with Federal Reserve officials saying they need "greater confidence" inflation is slowing before they consider cutting rates.

While the Fed is widely expected to leave rates unchanged at its monetary policy meeting next week, the data could impact expectations regarding when the central bank will eventually lower rates.

On Thursday, the Labor Department is due to release a separate report on producer price inflation in the month of February.

Producer prices are expected to rise by 0.3 percent in February, matching the increase seen in January, while the annual rate of producer price growth is expected to accelerate to 1.2 percent from 0 .9 percent.

The Commerce Department is also scheduled to release its report on retail sales in the month of February on Thursday. Economists currently expect retail sales to climb by 0.7 percent in February after falling by 0.8 percent in January.

Excluding sales by motor vehicle and parts dealers, retail sales are expected to rise by 0.4 percent in February following a 0.6 percent decrease in January.

Reports on initial jobless claims in the week ended March 9th and business inventories in the month of January are also due to be released on Thursday.

On Friday, the Fed is scheduled to release its report on industrial production in February, with production expected to come in unchanged after edging down by 0.1 percent in January.

The University of Michigan is also due to release its preliminary reading on consumer sentiment in the month of March on Friday. The consumer sentiment index is expected to dip to 76.6 in March after falling to 79.6 in February.

Reports on New York manufacturing activity in March and import and export prices in February are also scheduled to be released on Friday.