Today and tomorrow will be fairly light in terms of economic data, but there are two big ones.
Today: The Producer Price Index
Analysts are expecting a 0.1% increase compared to a decline of 0.4% in the previous month
Ex-food and energy prices are expected to have grown by 0.2%.
And then tomorrow is CPI, which is expected to show an increase of 0.2% vs. a decline of 0.2% previously.
These numbers take on heightened significance since they’ll be the last inflation numbers before Bernanke speaks at Jackson Hole later this month, where he might kind of announce more easing. Possibly.
But it’s believed that as long as inflation is looking firm, the Fed will be reluctant to act, even if the economy/financial markets are behaving sickly.
So these numbers are definitely to be watched.