According to analysts, the consumer price index (CPI) inflation data for the month of February is expected to harden while IIP data for January is expected to soften. The CPI rose 0.2% in February, but slipped to 1.5% on a year-ago basis due to lower energy prices over the past year.
Economists polled by Reuters had forecast the CPI and the core CPI edging up 0.2 percent in February.
"Core inflation eased up a bit in February, as prices rose 0.1% (0.11% before rounding) after five months of 0.2% gains". At the same time, there are few signs that inflation presents a threat to the Fed's current wait and see monetary policy stance. On Tuesday, the Labor Department reports on USA consumer prices for February. The core CPI had increased by 2.2 per cent for three consecutive months on an annual basis. Such figures give President Donald Trump another opportunity to claim credit for lower pharmaceutical prices, an issue that he's recently tweeted about several times.
A decline in gasoline prices that began in October ended last month. The January PCE price data will be released on March 19 after being delayed by a 35-day partial shutdown of the federal government that ended on Jan. 25.More news: Troegs moves up to No. 27 among nation's largest craft brewers
Retail inflation rose to a four-month high of 2.57 per cent in February but the prospects for a rate cut has brightened as the number is still below the RBI's inflation target of 4 per cent, while industrial growth declined to below 2 per cent in January. The price index for food rose 0.4%. School tuition and child care costs have increased 3 percent over the past 12 months. The WSJ Dollar Index, which measures the greenback against a basket of other currencies, gained roughly 8% over the past year.
Investors often look to CPI data as a key inflation gauge.
In a wide-ranging interview with CBS's 60 Minutes television news programme, Fed chair Jerome Powell on Sunday reiterated the central bank's wait-and-see approach to further monetary policy tightening in 2019.
Inflation pressures for core services remained steady, up 0.2% in February.More news: Maurizio Sarri fears Chelsea injuries due to poor Dynamo Kiev pitch
"We expect core CPI to print another solid 0.2% m/m increase, leaving the annual core inflation rate unchanged at 2.2% y/y". Inflation as measured by the CPI (not the Fed's preferred metric) is essentially right at 2%, with little indication it will shift in either direction soon. That index tends to run slightly below the Labour Department's CPI, and January figures are due March 29.
The public's inflation expectations fell in February, according to the Federal Reserve Bank of New York's latest Survey of Consumer Expectations.
USA 30-year bond yields were slightly down at 3.031 percent, from 3.032 percent on Monday.More news: U.S. dollar drops amid rising sterling