All eyes will be on the US Federal Open Market Committee (FOMC) meeting this week for insights into upcoming interest rates hikes after annual inflation hit a 4-decade high of 9.1% in June.
US policymakers are anticipating continued price surges and are backing a 50-75 basis points hike. Officials say the economic outlook warrants moving to a restrictive policy stance, and warned that tighter measures will be imposed if inflation pressures persist.
Advance Gross Domestic Product (GDP) releasing Thursday is expected to edge up 0.8-0.9% in the second quarter. This positive outlook follows a fall of 1.6% in Q1, the first contraction since the pandemic-induced recession in 2020, weighed down by record trade deficits, supply constraints, worker shortages, and high inflation.
US Core Personal Consumption Expenditure (PCE) for June will also be announced this week, predicted at a 0.9% rise.
Australia is expecting yet another bump in its quarterly Consumer Price Index (CPI) figures on the backs of soaring fuel prices and surging building costs. Annual inflation rate saw a 5.1% spike in the first quarter, marking its highest reading since the introduction of the Goods and Services Tax in the early 2000s.