Inflation updates and housing market data expected this week

Inflation updates are set to dominate the economic calendar this week, with the U.S. releasing key data on consumer and producer prices, according to the Boston Herald. The consumer price index (CPI) for October is expected to show inflation rising to 3.9% from 3.7% in September, reflecting continued price increases across a broad range of goods and services.

The CPI has shown inflation rising at more than 3% since March, a month following the U.S. war with Iran and the big surge for energy prices that jolted gasoline prices and shipping costs. The producer price index (PPI) for October will also be released, capturing inflation trends before they reach consumers. The September PPI showed the largest increase since December 2022, driven by rising fuel costs, especially diesel, impacting shipping and warehousing expenses.

In addition to inflation data, the National Association of Realtors will release its October report on existing home sales. Economists expect home sales to remain mostly unchanged from September, continuing a trend of sales hovering around a 4-million annual pace, which is below the historic norm of approximately 5.2 million sales per year.

These reports come a week after the U.S. midterm elections, where Democrats achieved a sweep of Congress. Inflationary pressures continue to affect households and businesses nationwide.