Should Traders Be Watching Inflation Data This Week? Definitely!

Inflation data from outside the US should pique traders interest this week. Several major economies will be reporting on actual inflation figures experienced during September 2021.

Will they match their forecasted values, or will the data follow US inflation and surprisingly creep upward?

Who should be watching the inflation data?

Traders of the Great British Pound, South African Rand, Euro, Canadian Dollar, and the Japanese Yen should circle these dates in their economic calendars.

Why does the Inflation data deserve special attention this week?

Last week, the US inflation rate (September, YoY) surprised the market by beating expectations. Inflation in the US was expected to report at 5.3%, level with the rate reported in August. However, the actual figure arrived ten basis points higher (5.4%) and returned inflation to the 13-year high seen a month earlier in July 2021.

As it stands, Trading Economics is forecasting inflation in the US inflation rate (October, YoY) to rise another ten basis points to 5.5%. If inflation were to cross 5.6%, a new 30-year record would stand (US inflation Jan, YoY, 1991 was 5.7%).

Calendar Dates to Circle: United Kingdom, GBP, Inflation Rate YoY September

South Africa, ZAR, Inflation Rate YoY September

European Union, EUR, Inflation Rate YoY September

Canada, CAD, Inflation Rate YoY September

Japan, JPY, Inflation Rate YoY September