Economy Week Ahead: Key Inflation, Jobs Numbers Highlight Week’s Data

U.S. consumers are still spending, though household outlays appear to be growing at a slower pace than at the start of the year as rising prices and Russia’s invasion of Ukraine sap confidence. Economists surveyed by The Wall Street Journal forecast consumer spending on goods and services rose for the second consecutive month in February, fueled in part by higher prices.

The Federal Reserve’s preferred measure of inflation is expected to reach a new multidecade high in February, underscoring challenges for the central bank as it seeks to tamp down rising prices without causing a recession. The Commerce Department’s personal-consumption expenditures price index excluding food and energy has been pushed higher as strong consumer demand runs up against pandemic-related supply constraints.

FRIDAY

U.S. employers have been adding jobs at a rock-solid pace in recent months as the labor market pivots toward a post-pandemic world. Economists are forecasting another strong month of employment gains in March but will be watching closely to see if a tight labor market—marked by more job openings than available workers—is pushing up wages and fueling inflation.