The economic data from the U.S. for the week ahead will potentially decide the course of monetary policy from the FOMC which meets the following week.

Inflation data is on the tap this week. On a monthly basis, headline consumer price index is expected to rise just 0.2%.

This comes after headline CPI increased 0.5% in the previous month.

However, on an annual basis, headline inflation is expected to rise to 2.2%, up from 2.1% that was seen the month before.

Core inflation data is also expected to show a modest 0.2% increase, which is slightly slower from 0.3% increase seen in the previous month.

On an annual basis, core CPI is expected to remain steady at 1.8%. Besides the CPI data, producer prices data is also expected over the week.

PPI is expected to rise strongly with forecasts pointing to a 2.6% increase. This comes after the previous month, annual PPI was registered at 2.2%.

Retail sales numbers are also due later in the week.

According to the economists polled, retail sales are expected to rise 0.3% on the month.

This would potentially offset the 0.3% decline that was registered previously. Excluding autos, retail sales is forecast to rise 0.3% and is expected to see an increase after retail sales stayed flat in the previous month.