Economy · Market move
US PPI, Eurozone GDP Put Rate-Hike Bets to the Test
US producer prices are forecast to rise 0.4% in October, while euro-area growth is projected at 0.4%. French inflation has already accelerated.
Kunkafa News · Published · 2 min read
By Kareem FaridDiscuss with the author on X
Key points
- US PPI is expected today before US markets open, with a 0.4% monthly increase forecast.
- Euro-area GDP is expected today before US markets open; forecasts point to 0.4% quarterly growth.
- French harmonised inflation rose to 3.7% in October from 3.4% in September.
US producer-price and euro-area growth reports headline Friday’s economic calendar, after France reported faster inflation earlier in the morning.
US producer prices
The October US producer price report is expected today before US markets open. Forecasts put the monthly increase at 0.4%, after 1.3% in September, and at 0.3% for core prices, after 0.7%. A stronger reading could reinforce bets on a December Fed rate rise, XTB said.
Euro-area GDP
The euro-area third-quarter GDP update is also expected today before US markets open, with quarterly growth forecast at 0.4%. That would leave Eurostat’s October 30 estimate unchanged. The earlier estimate showed growth slowing from 0.6% in the second quarter.
French inflation has already risen
France’s final harmonised inflation reading rose to 3.7% year on year in October from 3.4% in September, XTB reported, below the 3.8% forecast. Prices increased 0.4% on the month. The rise adds to the inflation pressure facing Europe ahead of the GDP release.
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