Get ready for a new era in the field of finance. The September Consumer Price Index (CPI) will be out in just a couple weeks’ time, no later than October 13th. This publication is particularly important given that it comes just ahead of the Federal Open Market Committee’s (FOMC) next meeting. Together, the data will paint an extremely important picture of inflation trends, a key piece to the monetary policy puzzle.
In the latest economic updates from around the world, some positive global indicators have appeared. It follows Japan reporting a surprise deceleration in wage growth. Along with high inflation, this development spurred significant concern about consumer spending and the region’s positive economic momentum. At the same time, Canada’s labor market has recently reignited signs of stabilization, providing a ray of optimism amid global turbulence.
In our neighboring continent Latin America, inflation is soaring. Aftershock Both Mexico and Brazil surprised to the upside on their inflation prints this week. Taken together, these trends have the potential to upend long-established central bank policy. To do so, they must meet the daunting challenge of fostering sustained economic growth while curbing inflation.
This week saw the long-awaited resumption of significant data releases from overseas economies. These legislative and administrative updates have greatly contributed to the unexpected complexity of today’s financial environment. Ominously, the new tariffs on imported wood products are scheduled to go into effect October 14. These tariffs will affect softwood lumber, furniture, and cabinets. They are not likely to have an impact on the U.S. average effective tariff rate, which will stay at 18%. While this policy shift will provide some protection to domestic industries, it has the potential to raise prices for American consumers.
Even with these developments, economic data releases are still being pushed back from the schedule as the federal government shutdown continues. High-profile releases like international trade data and weekly jobless claims, to name a few, are caught up in this unusual impasse. As for economic indicators, consumer price inflation will hit the tape on Wednesday and retail sales on Thursday. You can keep your eyes peeled to Australia’s employment figures coming out on Wednesday. Across the pond, the U.K. will announce its Monthly GDP on Thursday.
As markets await these crucial updates, stakeholders remain vigilant in analyzing how these factors will influence economic trends domestically and internationally.