US Inflation Expected to Rise, Economic Growth to Slow Ahead of Key Data Releases

The latest inflation update is anticipated to show that prices, including for gasoline, clothing, and groceries, continued to increase at a faster rate in September. Economists forecast the Personal Consumption Expenditures (PCE) report, the Federal Reserve's preferred inflation measure, to jump at a 3.7% rate for September, up from 3.4% in August. Additionally, the initial report on third-quarter economic growth is expected to be sluggish, with economists forecasting a 1.7% rise in Gross Domestic Product (GDP) from July through September, a deceleration from the 2.2% growth in the second quarter.