The Business News Week Ahead

Central bank activities are light in the coming week when inflation updates instead will be in the spotlight. Core PCE prices out of the US will cap the week on Friday and, despite unexpected pressure in recent core consumer prices, only an incremental rise is expected for the annual rate which is seen up 1 tenth to 1.7 percent and still below the Federal Reserve's 2 percent target. The first look at the German CPI in August, which likewise isn't expected to show much pressure, will be posted on Thursday with the Eurozone harmonized flash out on Friday. Sentiment readings, of special focus during times of shifting economic data, will include German and French business assessments with the Ifo and business climate indicator on Monday and Tuesday, US consumer confidence on Tuesday, and both business and consumer views in Thursday's EC economic sentiment data. None of these are expected to show much strength. Data on manufacturing will be posted Monday with the durable goods report out of the US followed on Thursday with industrial production from Japan. Retail sales will be posted on Friday by both Japan and Germany. If the week goes as expected, inflation will continue to look soft as will sentiment and possibly manufacturing as well.