Key inflation reading in week ahead to offer clues on future Fed rate moves

The week ahead is set to be an important one for inflation watchers, as the latest readings on consumer prices and producer prices are due to be released. The data will offer clues on the direction of future Federal Reserve rate moves and could have a major impact on the markets.

The consumer price index (CPI) is expected to show a modest increase in inflation, with economists forecasting a 0.2 percent rise in the index for the month of April. This would be slightly higher than the 0.1 percent increase seen in March. Core CPI, which excludes volatile food and energy prices, is expected to remain unchanged at 0.2 percent.

The producer price index (PPI) is also expected to show a modest increase, with economists forecasting a 0.2 percent rise in the index for the month of April. This would be slightly higher than the 0.1 percent increase seen in March. Core PPI, which excludes volatile food and energy prices, is expected to remain unchanged at 0.2 percent.

The data will be closely watched by the Federal Reserve, as it will provide a clearer picture of the underlying strength of the economy. If the data shows a pickup in inflation, it could lead to speculation that the Fed may raise rates sooner than expected. On the other hand, if the data shows a slowdown in inflation, it could lead to speculation that the Fed may hold off on raising rates.

In addition to the inflation data, the week ahead will also see the release of the latest retail sales figures. The data is expected to show a modest increase in sales, with economists forecasting a 0.3 percent rise in the index for the month of April. This would be slightly higher than the 0.2 percent increase seen in March.

The week ahead will also see the release of the latest industrial production figures. The data is expected to show a modest increase in production, with economists forecasting a 0.3 percent rise in the index for the month of April. This would be slightly higher than the 0.2 percent increase seen in March.

Overall, the week ahead will be an important one for inflation watchers, as the latest readings on consumer prices and producer prices are due to be released. The data will offer clues on the direction of future Federal Reserve rate moves and could have a major impact on the markets.