Next week is set to feature several significant business events and economic indicators that will be closely monitored.

On Tuesday, the Labor Department will unveil its producer price index for December, which serves as a key indicator of inflation at the wholesale level. This figure is crucial as it reflects how rising costs may eventually be transferred to consumers. Analysts anticipate that the data will show an increase in wholesale prices for December, surpassing the pace seen in November. The expected annual changes in the producer price index, not adjusted for seasonal variations, are as follows: July at 2.4%, August at 2.0%, September at 1.9%, October at 2.4%, November at 3.0%, and an estimated 3.5% for December.

On Wednesday, attention will shift as the Labor Department releases its consumer price index report for December. The consensus among economists is that inflation will rise slightly to 2.8%, marking a continual upward trend since October. This situation has raised concerns for the Federal Reserve, which has made three interest rate cuts in 2024 but has indicated a more cautious approach moving forward into 2025. The anticipated annual changes in the consumer price index, again not seasonally adjusted, include: July at 2.9%, August at 2.5%, September at 2.4%, October at 2.6%, November at 2.7%, and an estimated 2.8% for December.

Finally, on Thursday, the Commerce Department will publish its latest report on U.S. retail sales. Experts predict a slight decline in retail sales for December following an increase the previous month. Despite facing the challenges of prolonged inflation and elevated interest rates over the past three years, consumer spending has remained relatively steady. The projections for monthly retail sales changes, adjusted for seasonality, are as follows: July at 1.2%, August at -0.1%, September at 0.9%, October at 0.5%, November at 0.7%, and an estimated 0.5% increase for December.