Euro Area Inflation Prints Out Today, US PCE Inflation Data Due
The euro area is bracing for inflation data from Germany, France, and Italy on Friday, which will provide hints at the overall inflation rate. The data comes after September flash inflation prints were released today, giving a sneak peek into what to expect.
Meanwhile in the US, August's PCE (Personal Consumption Expenditures) inflation is due out later today. Headline inflation is likely to have risen from July's 0.2% month-over-month and 3.7% year-over-year, driven by higher energy prices in August. However, core inflation might still tick up given the strong underlying economy.
The US Bureau of Economic Analysis will also update its methodology for some PCE subcomponents, which could provide relief to core inflation. The final revision of Q2 GDP is also due out today.