Economy

Yahoo Finance
Inflation, retail sales, and the market rally broadens: What to know this week

Josh Schafer · Reporter
Mon, Mar 11, 2024, 5:31 AM EDT 6 min read

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In the week ahead, investors will face the final major test before the Federal Reserve's March 20 meeting with the February Consumer Prince Index (CPI) report out Tuesday, which offers an updated look at inflation. Retail sales and consumer sentiment reports will feature on the economic calendar in the back half of the week.

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Price check

Federal Reserve Chair Jerome Powell has said repeatedly the central bank wants more "confidence" in inflation's path downward before cutting interest rates. ... Tuesday's CPI reading follows a hotter-than-expected January report that showed inflation's decline could be "bumpy," and prompted investors to price in fewer interest rate cuts this year.

For February, Wall Street expects headline inflation to log an annual gain of 3.1%, unchanged from the headline number in January, according to estimates from Bloomberg. Prices are set to rise 0.4% on a month-over-month basis, an increase from the 0.3% rise seen in January.

On a "core" basis, which strips out food and energy, prices are expected to have increased 3.7% year over year, a slowdown from the 3.9% increase seen in January. Monthly core price increases are expected to clock in at 0.3%, lower than the 0.4% increase seen in January. ... "January's CPI data came in hotter than expected and renewed concerns about how quickly inflation could be brought to a heel," Wells Fargo's team of economists led by Jay Bryson wrote in a research note on Friday.

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