Next week’s US data are expected to show a modest pick-up in headline inflation, driven by higher energy costs, while underlying price pressures remain relatively contained. Existing home sales are also seen weakening further as elevated mortgage rates continue to erode affordability and curb demand.
European and UK Economic Outlook
In Europe, the ECB is expected to raise rates by 25 bps as it gauges whether energy and food inflation is broadening. The UK is likely to report slower growth in July after June’s rebound.
Latin American Inflation and Monetary Policy
In Latin America, Mexico’s inflation is expected to edge higher, supporting an extended pause by Banxico, while Brazil’s inflation is seen easing further, reinforcing the case for another rate cut by the central bank.
