Inflation data due this upcoming week is expected to raise expectations of further rate hikes by the Federal Reserve, European Central Bank, and other international central banks.
On Friday, the Federal Reserve is set to release its preferred price metrics. The report, which shows inflation excluding volatile food and fuel components, is expected to indicate that inflation remained high in May, well beyond the Fed’s 2% target.
Analysts expect the core PCE price index to rise 4.7% from a year ago, thereby matching its rise for the previous month. The index is also expected to rise 0.4% on a monthly basis; a fifth rise over the past six months.
European Central Bank officials will discuss the inflation situation in the Eurozone Forum on Central Banking in Sintra this week. Italy is expected to publish its inflation data on Wednesday, followed by Germany and Spain the following day.