US CPI data due at 12.30 GMT

It's pretty easy to sum up what the inflation data will be (y/y numbers);

  • Good - Headline down but core holding or rising
  • Bad - Headline down and a small miss on the core (1-2 points in both)
  • Ugly - A sizeable drop in both the headline and core (3+ points in both)

What's expected?

  • CPI -0.1% vs +0.2% in August y/y
  • -0.2% vs -0.1% prior m/m
  • Core 1.8% y/y unch
  • +0.1% m/m unch
  • Real weekly earnings were 0.7% m/m & 2.3% y/y in August (no forecasts)

Alongside that we have initial jobless claims and one of my favourite bellwethers for manufacturing from the Empire state

  • Initial jobless exp at 270k vs 263k prior
  • Oct Empire State exp -8.00 vs -14.67 prior

Focus will be on the inflation numbers but jobs may be a factor too if we see a big jump in claims