In October, inflation in the US likely remained stagnant, showcasing the unpredictable nature of price changes as the economy strives to meet the Federal Reserve’s target. The upcoming release of the core consumer price index could indicate that prices excluding food and energy maintained a consistent monthly and annual growth rate from September. Overall, the consumer price index may have risen by 0.2% for the fourth consecutive month, with a potential acceleration in the year-over-year measure. Economists at Wells Fargo & Co. suggest that the gradual normalization of prices after the pandemic-induced distortions is occurring at a sluggish pace, especially in core goods like cars and auto parts, partly due to heightened demand post-Hurricanes Helene and Milton.
Here’s a breakdown of the economic landscape worldwide:
Asia:
- China’s economic performance in October is anticipated to show a slight improvement, with various data points like industrial output, fixed asset investment, and retail sales reflecting a modest uptick. President Xi Jinping’s growth objectives have led to extensive stimulus measures to mitigate the impact of property investment downturn.
- India is projecting a rise in inflation to 5.72% in October, along with an expected rebound in industrial output in September. Australia will release consumer and business confidence surveys.
- Bank of Japan’s summary of opinions from its October meeting and Reserve Bank of Australia Governor Michele Bullock’s appearance on a panel will provide insights on future policies.
Europe, Middle East, Africa:
- The UK, following the Bank of England rate cut, is expected to experience weakened economic growth in the third quarter and struggle with industrial malaise. European Commission’s new forecasts and the European Central Bank’s meeting outcomes will guide policy decisions.
- Russia might report a contraction in economic growth for the first time in years, while inflation data from a range of countries including Norway and Nigeria will shed light on monetary policies.
Latin America:
- Argentina may witness a slowdown in inflation, with Brazil’s central bank likely adopting a more cautious stance in the wake of domestic economic uncertainties and the US election.
In conclusion, global economic data forecasts a mixed bag of challenges and opportunities in the months ahead, urging policymakers and businesses to navigate through these turbulent times strategically.
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