US: Key economic reports for next week - Danske Bank

Analysts from Danske Bank see inflation data (CPI and PPI) as the main releases for next week in the US. 

Key Quotes: 

“In the US, we have a relatively quiet week ahead of us, with the main news release being CPI and CPI core for July on Friday. Both inflation measures have been rapidly declining since February and are currently far below the Fed’s 2% target and there is no immediate compelling argument for a drastic uptick. Although the Fed continues to believe the tighter labour market will eventually drive inflation up and the US dollar has recently depreciated sharply, these are both effects that take a long time to work their way into the CPI numbers. Thus, we believe inflation will continue to hover around 0.1% m/m (both headline and core), implying both figures increased 1.7% y/y in July (in June, headline CPI read 1.6% y/y, while CPI core was 1.7%).”

“NFIB small business optimism for July is due to be released on Tuesday. Since the end of 2016, when the index soared, it has drifted downwards and we expect this trend to continue. Hence, we expect the index to come in at 103.”

“The coming week also brings a number of speeches by FOMC members.”