US key reports for next week: inflation and retail sales - Danske Bank

Next week, economic data to be released next week includes CPI, retail sales and IP. In the US, analysts from Danske Bank expect inflation pressure to have remained muted in October with the headline CPI inflation rate falling to 1.9% y/y from 2.2% in September. 

Key Quotes: 

“In the US, we are due to get CPI and retail sales control group figures on Wednesday (both for October). CPI inflation is likely to have been affected by the fall in energy prices in October, when the retail price of fuel declined approximately 5% from September. We do not expect any major changes in the other subcomponents compared with their growth in September. Hence, we estimate that CPI inflation was 0.0% m/m (1.9% y/y versus 2.2% y/y in September) and CPI core inflation was 0.2% m/m (1.7% versus 1.7% in September).”

“On Thursday, industrial production data for October is due for release. Industrial production rebounded in September following the sharp fall in August. We believe that the current development in industrial production broadly reflects the strength of the economy and hence estimate industrial production increased 0.25% in October.”

“The coming week also brings several speeches by FOMC members, including Janet Yellen, who is due to speak on Tuesday.”