Wholesale and consumer gauges due Thursday and Friday
The U.S. is set to release two important inflation reports this week, giving Wall Street and the Federal Reserve fresh data on price pressures.
On Thursday, the federal government releases the August Producer Price Index, which tracks prices at the wholesale level before businesses pass them along to consumers.
On Friday, the government releases the August Consumer Price Index, the more widely-followed gauge. The CPI measures price changes for specific grocery items, furniture, and clothing, among other categories. It also tracks price changes for services ranging from car maintenance to travel and restaurant dining.
Both reports will help give Wall Street and the Federal Reserve a clearer picture of inflation’s direction. The CPI in particular captures many of the costs households notice most directly.
The reports come against a backdrop of inflation that remains above 3% year-over-year, according to Federal Reserve Economic Data. That pace is squeezing households and businesses.
Wage growth, as measured by the Atlanta Fed’s Wage Growth Tracker, was running at 3.8% on a three-month moving-average basis for the median continuously-employed worker. The relationship between price increases and pay gains is one of the data points policymakers watch.