The latest inflation reports will be in the spotlight next week, with the January Consumer Price Index (CPI) out on Tuesday, and the Producer Price Index (PPI) due on Thursday. Also on Tuesday, the U.S. Senate Committee on Banking, Housing, and Urban Affairs will hold a hearing on cryptocurrencies and digital assets, amid calls to regulate the industry and safeguard crypto investors. On Wednesday, last month’s retail sales figures could offer insights into consumer confidence and willingness to spend. More updates on the housing market will arrive with January building permits and housing starts due Thursday. Earnings season continues with reports from The Coca-Cola Company, Airbnb, DoorDash, Marriott International, Cisco Systems, and Paramount Global, among others.

KEY TAKEAWAYS

Earnings season continues next week with reports from The Coca-Cola Company, Airbnb, DoorDash, Marriott International, Cisco Systems, and Paramount Global, among others.
The Labor Department will release the Consumer Price Index (CPI) for January on Tuesday, providing the latest update on consumer inflation.
The Producer Price Index (PPI) will follow on Thursday, tracking inflation from the standpoint of manufacturers and wholesalers.
The Census Bureau will release January retail sales figures on Wednesday, indicating whether consumer spending held up last month.
The U.S. Senate Committee on Banking, Housing, and Urban Affairs will hold a hearing on cryptocurrencies and digital assets on Tuesday, amid calls to regulate the industry and safeguard crypto investors.

The Latest Updates on Inflation

The latest inflation reports could take center stage next week. On Tuesday, the Bureau of Labor Statistics (BLS) will release the Consumer Price Index (CPI) for January. Prices are projected to have risen 0.4% last month, accelerating from 0.1% in December. On an annual basis, CPI inflation likely slowed to 6.2%, down from 6.5% in December and compared to a 40-year high of 9.1% reached in June of last year. It would mark the slowest annual rate since October of 2021.

On Thursday, the BLS will issue the Producer Price Index (PPI) for January, tracking inflation from the standpoint of manufacturers and wholesalers. Producer prices likely rose 0.4% last month, rebounding from a 0.5% decline in December. On an annual basis, price growth likely decelerated to 5.4% from 6.2% in December, which would mark the smallest year-over-year gain since March of 2021.

January Retail Sales

On Wednesday, the U.S. Census Bureau will release national retail sales figures for January. Retail sales are projected to have risen 0.9% last month, rebounding from a 1.1% decline in December. On an annual basis, sales were likely up 4.5%, decelerating from 6% in December.

A strong retail sales report could signal that the U.S. consumer remains willing to spend, despite persistently high inflation and rising interest rates. The University of Michigan’s Consumer Sentiment Index (MCSI) rose to a 13-month high of 66.4 in early February, indicating rising consumer confidence. Given that consumer spending accounts for nearly 70% of U.S. GDP, a sustained rebound in spending could help the economy avoid a recession this year.