Watch CNBC’s live coverage of Friday’s key inflation data

Tomorrow, Friday, the Commerce Department will release crucial data on inflation, which will have a significant impact on financial markets.

This data, known as the personal consumption expenditures price index (PCE), is closely monitored by the Federal Reserve as its preferred measure of inflation.

The report will provide insights into how consumer prices changed in February, excluding food and energy, known as the core index.

Economists predict a modest increase of 0.3% for the core index compared to January, while the overall index is expected to rise by 0.4%.

These estimates suggest inflation is slightly elevated compared to the Fed’s target of 2%.

However, the core index is more closely scrutinized as it reflects longer-term inflation trends.

Economists project an annual increase of 2.8% for the core index, while the overall index is expected to rise by 2.5%.

Beyond the PCE data, the report will also shed light on personal income and consumer spending.

Both are anticipated to show moderate growth.

Market analysts and CNBC will provide in-depth coverage of the PCE data starting at 8:15 a.m.

ET, dissecting the numbers and their implications for investors and the economy.

Since financial markets are closed on Friday for Good Friday, this analysis will be particularly important for understanding the potential impact on markets once they reopen on Monday.