Yesterday figures from the labour department showed US producer prices rose moderately in April, but underlying inflation pressures at the factory gate appeared to be picking up. Economists report price pressures have remained moderate despite a strong economy and tightening labour market. A key gauge of underlying producer price pressures that excludes food, energy and trade services increased 0.4 per cent in comparison to last month.
The central bank kept interest rates unchanged last week and signalled little desire to adjust monetary policy anytime soon. Fed Chairman Jerome Powell said inflation had been “somewhat weaker,” but believed the softer readings “may wind up being transient.”
In opening remarks to a two-day Fed conference on the middle-class Federal Reserve Chairman Jerome Powell said the relatively slow growth of middle-class incomes, widening inequality, and declining prospects for the poor to move up the economic ladder are “crucial” problems for the U.S. to tackle in coming years.
09:30 – GBP: Gross Domestic Product expected to decrease to 0.0%
09:30 – GBP: Manufacturing production forecast to fall to 0.1%
09:30 – GBP: Preliminary GDP forecasted to increase to 0.5%
13:30 – USD: Consumer Pricing Index at 0.4%
13:30 – USD: Core CPI expected to increase to 0.2%