Business Lookahead: an inflationary dilemma

9 個月前

STORY: From key inflation data in the U.S. and Europe, to Asia's sliding currency conundrum, these are the stories to watch in business and finance.

The personal consumption expenditures price index lands on September 29.

It's a number tracked by the Fed for its 2% inflation target.

Eyes will also be on events in Washington where time is running short to avert a potential government shutdown.

Eurozone consumer price data, also out on September 29, has the potential to move markets significantly.

With the bloc's economy weakening, the ECB has hinted a pause in rates is coming.

A further decline in inflation will undoubtedly spur intense speculation about the timing of its first rate cut.

Predictions of $100 oil are becoming louder.

The price of oil is a major inflation variable and has risen to 10-month highs, driven by Saudi Arabia and Russia's plans to extend production cuts.

Central banks may not yet be able to declare the war on inflation over.

In Asia, central banks are balancing how to stop a slide in currencies amid weakening economic growth and peaking inflation.

The Bank of Thailand meets on September 27 and is likely to stay hawkish for the sake of the baht...despite a struggling economy.

Decisions out of Indonesia and the Philippines recently favored currency stability.

Much may yet rest on decisions further afield, namely by the Fed.