The US consumer price index excluding food and fuel is expected to rise 0.3 per cent for the second month in a row. Economists favor the index as a better indicator of underlying price pressures. On an annual basis, core CPI is expected to cool, but that is a reflection of base effects: last September the CPI rose by the most since 1982.
The Fed's efforts to bring inflation down to desirable levels appear to be complicated by continued job growth and the likelihood that the intensifying Israeli-Palestinian conflict will fuel higher energy prices in the United States. If inflation continues to pick up, the Fed is likely to move from a soft option of "stay" to a hawkish option of "stay".
While price pressures have eased, they are still proving tricky - which is why Fed officials have been vocal about the need to keep their benchmark interest rate high for an extended period. That message has resonated in credit markets, where Treasury yields have surged recently.
Minutes from the Fed's September meeting, due to be released on Wednesday, could help shed light on the extent to which central bankers are leaning toward another rate hike before the end of the year. The next policy decision is due on November 1.
A number of Fed officials, including Vice Chairman Philip Jefferson, will speak in Ben. Fed Governor Robert Waller and regional Fed presidents Lorie Logan, Raphael Bostic, Neel Kashkari and Susan Collins will also speak.
The government's producer price index on Wednesday is expected to be in line with more moderate wholesale price inflation.
Economists Anna Wong, Stuart Paul and Eliza Winger said, "The September jobs report does nothing to settle the debate over whether the Fed is done raising interest rates. Two key economic indicators to be released - the CPI and the University of Michigan Survey of consumer sentiment - may provide a clearer reading. We expect core CPI inflation to be slightly above the Fed's 2 percent target in September, and higher gasoline prices may have pushed up near-term inflation expectations in the University of Michigan's preliminary October survey."
At this week's annual meetings of the International Monetary Fund and World Bank in Marrakesh, Morocco, global central banks are not scheduled to make any major interest rate decisions.
In addition to a number of events and speeches by leading monetary officials, the IMF will release its World Economic Outlook on Tuesday, which includes a new round of forecasts.
European Central Bank President Christine Lagarde said in an interview published Sunday that the International Monetary Fund "has lowered its forecast for global growth, excluding the United States."