The United States is poised for a cascade of economic data releases next week that will shape the conversation heading into the November midterm elections. The Labor Department is slated to publish the consumer price index (CPI) on Wednesday, which is expected to show a 0.2 percent rise from the previous month and a 3.6 percent increase year‑over‑year. A day later, the same agency will release the producer price index (PPI), which analysts anticipate will climb above the 5.4 percent level recorded in August.
Oil prices keep pressure on household budgets
Oil prices have surged past $100 a barrel as the conflict between the United States and Iran enters its eighth month. Gasoline prices remain above $4 per gallon, while diesel sits just below the record highs reached in September. The higher fuel costs are a key driver behind the latest inflation readings and are adding strain to both family budgets and business operating costs.
Housing market shows little movement
On Tuesday, the National Association of Realtors will release September existing‑home‑sales data. Economists expect the numbers to be flat compared with August, which saw the slowest annual pace of sales in more than a year. Rising mortgage rates—now in their seventh consecutive week of increase, according to Freddie Mac—have pushed the average long‑term home‑loan rate to its highest level in nearly three years, further dampening buyer activity.
Retail sales surprise with a solid gain
Despite complaints about higher prices at the pump and grocery aisles, consumers pushed retail sales up 1.2 percent in August, nearly double the forecast. Economists predict a more modest 0.65 percent increase for September as shoppers begin to tighten belts ahead of the holiday season. The National Retail Federation will issue its holiday‑season outlook later in the week.
Big banks report record‑quarter profits
Volatile markets have boosted trading‑desk revenue for the nation’s largest banks, and analysts expect the third‑quarter earnings reports to reflect that trend. Forecasts call for JPMorgan Chase to post a 47 percent profit rise, Citigroup a 61 percent jump, and Bank of America a 36 percent increase. Other major institutions, including Morgan Stanley, are also slated to release results.
Federal Reserve maintains a tight monetary stance
The Federal Reserve recently raised its benchmark interest rate in an effort to curb inflation and signaled that another hike could come before year‑end. Higher rates allow banks to charge more for loans, a factor that supports their earnings but also adds to borrowing costs for households and businesses.
All of these data points—price pressures from oil, steady but sluggish housing activity, resilient consumer spending, and strong bank earnings—will feed into the national dialogue as voters consider the economic record of the Trump administration ahead of the midterms.
Original reporting: Alexandria, VA News – WTOP News — read the source article.
