The Albanese government's first budget and third quarter inflation figures will dominate the economic agenda this week.
The budget will be handed down on Tuesday and despite rising cost of living pressures, is not expected to contain immediate spending stimuli that might fuel inflation.
KPMG economist Sarah Hunter expects spending commitments to be staged over time so as not to provide stimulus right away.
For example, the commonwealth paid parental scheme will be expanded to 26 weeks in stages, with the full scheme to be rolled out by July 2026.
"Also, spending increases will ideally be matched with savings elsewhere - so any plans to increase wages for aged care workers or increase defence expenditure, for example, would see reduced spending in other areas," Dr Hunter said.
The national statistics bureau will drop the September quarter inflation figures the day after the budget.
Headline inflation hit 6.1 per cent in the June quarter and is still expected to peak at 7.75 per cent, according to up-to-date Treasury forecast, despite the inflationary effect of floods in southeast Australia.
ANZ economists expect annual core inflation to hit 7 per cent in the third quarter and the trimmed mean to reach 5.6 per cent.
On Monday, the CommSec will release its State of the States report that takes the economic pulse of each state and territory and Reserve Bank assistant governor (financial markets) Christopher Kent will deliver a speech in Sydney.
There will be further data drops from the ABS on Thursday, including export and import prices for the September quarter and detailed labour force data for the month.
The RBA will also release its annual report on Thursday.
On Friday, the ABS will release its producer price index for the September quarter, which measures the price change of products as they leave the place of production.
US stock index futures briefly turned positive on Friday, after a report said Federal Reserve officials were likely to debate how to signal plans to approve a smaller increase in December.
The Wall Street Journal reported Fed officials were barrelling toward another interest-rate rise of 0.75 of a percentage point at their November meeting, while some have begun signalling their desire to slow the pace of increases soon.
The Dow Jones Industrial Average rose 748.97 points, or 2.47 per cent, to 31,082.56, the S&P 500 gained 86.97 points, or 2.37 per cent, to 3,752.75 and the Nasdaq Composite added 244.87 points, or 2.31 per cent, to 10,859.72.
Australian futures rose 95 points, or 1.42 per cent, to 16,980.
The benchmark S&P/ASX200 index finished Friday down 53.9 points, or 0.8 per cent, to 6676.8.
