Inflation figures under scrutiny

In the US, markets will be watching for the Consumer Price Index (CPI) or inflationary figures for September, which is expected by market participants to show a drop from the previous level of 5.4 per cent. The Producer Price Index (PPI) numbers for the same month can be studied for indications of future inflation levels. Markets will also look towards the Fed's Beige Book, which is a report on current economic conditions, published by the Federal Reserve eight times a year.

Information on the state of the US housing market will be provided through the MBA Mortgage application, housing starts and building permits figures. Likewise, the resilience of the labour market will be judged through the initial jobless and continuing claims numbers. A number of confidence indicators, together with the Industrial Production figures for September will complete the economic release schedule in the US.

In the Eurozone, the September CPI figures will also attract some attention after being relegated to a secondary stage in the past few weeks as global economies struggled to get to grips with financial market upheaval. The publication of the August Industrial Production figures for the area and with the construction output numbers, also for the same month, are due. Markets will also await details of the euro area's economic sentiment during October, which will be provided via the ZEW survey.

The September UK CPI data will be avidly awaited as markets are expecting an increase over the previous month's figures. This week's calendar will also feature PPI numbers for September and the ILO employment rate for August.

This article has been prepared by Bank of Valletta plc, which is licensed to conduct investment services business by the MFSA, for your general information only. This information is not a solicitation or offer by the bank to acquire or sell securities, nor does it constitute any form of advice by the bank. Appropriate advice should be obtained before making any such decision. Past performance is not necessarily a guide to future performance and the value of your investments may fall or rise.