Noreen Burke

Investing.com — Data on inflation will be the highlight of the U.S. economic calendar in the week ahead as investors continue to digest the Federal Reserve’s decision to begin tapering stimulus measures, marking the beginning of less accommodative monetary policy. A number of Fed officials including the Chairman Jerome Powell are expected to meet investors in order to hear their opinions on rising price pressures. While earnings season may be ending, many companies will still report on the subject. The UK is set to report growth data and China’s Communist Party looks set to green-light a third term for President Xi Jinping. Here’s what you need to know in the coming week.

1. Inflation data

On Tuesday, data on October producer price inflation is due to be released. Then on Wednesday will come figures on consumer price inflation.

CPI is expected to reach their highest levels since the pandemic. Experts expect a rise of both month-on, and year on year. Expect an increase in core inflation which does not include food or energy, by an annualized

Fed held firm to its belief that high inflation will prove “transitory” so it is unlikely to need a rapid rise in interest rates. This led to investors calling the Fed’s current meeting a “dovish taper.”

However, the central bank is yet to announce plans for reducing monthly bond purchases. This could be triggered by a taper tantrum. But inflation numbers that have fueled rate-hike speculation may change this.

2. Fed speakers

Fed Chairman Jerome Powell will make two appearances over the course of the week. The first is at an online Fed conference Monday about gender and economics. He will speak Tuesday at the online conference “Diversity and Inclusion in Economics and Central Banking”, jointly hosted by Bank of Canada and Bank of England.

The Fed vice chairman Richard Clarida, John Williams Fed president, New York Fed president, Fed governor Michelle Bowman and Patrick Harker Fed presidents of Philadelphia, Chicago, Evans Fed president Charles Evans, San Francisco Fed President Mary Daly also spoke during the week.

3. Earnings

Wall Street’s primary indexes were at their highest record level on Friday, as a result of better-than expected third-quarter earnings. This was due to a stronger U.S. job report and more positive data. Pfizer ‘s  (NYSE:) experimental antiviral pill for COVID-19.

Market highs may be set by new earnings reports. The entertainment company Walt is among the companies reporting for next week. Disney (NYSE): Drugmakers AstraZeneca and BioNTech (NASDAQ) together with Softbank, Softbank (OTC), PayPal (NASDAQ), Coinbase (NASDAQ), AMC Entertainment(NYSE:), Krispy Kreme (NASDAQ:), and Adidas (OTC) are just a few of the many.

4. UK GDP

Following the Bank of England’s decision last week to hold interest rates steady, markets were wronged. The UK will soon release data regarding third quarter growth. The expected slowdown in growth will be 1.5% compared to the prior quarter.

Investors anticipated that the BoE will be the first major central bank to raise interest rates following the COVID-19 pandemic.

Although the BoE did not rule out a possible move, it stated that rates would likely be raised from their current low of 0.1% in the “coming months”, if things went according to plan. However, the BoE felt there was “value” in waiting for information on the labor market.

5. China

From Monday to Thursday, the top Chinese Communist Party leaders will meet in Beijing. The decision-making Central Committee may give its approval for a unprecedented third term of President Xi Jinping.

The meeting comes at a time when growth in the world’s second largest economy is faltering amid stringent measures to curb virus outbreaks, a clampdown on the property market, energy shortages and disrupted supply chains.

The data on Sunday indicated that while the Chinese slow down in October was still ahead of expectations, they fell short of predictions in November. It is a sign that there will be continued weakness in domestic consumption.