CPI and GDP Numbers to Dominate Financial Landscape This Week

The upcoming week in finance will be dominated by two key economic data releases: US CPI and UK GDP numbers. The inflation landscape is of particular interest, as persistently high prices have become a defining feature of the US economy. The July reading for US CPI is expected to remain at 4.7% year-on-year growth rate, with core CPI coming in at 2.5%. While these rates are still above target, they are slightly lower than previous months and closer to the Fed's 2% goal.

The Core PCE Index, a measure of inflation that adjusts for consumer switching between cheaper and more expensive products, is currently growing at 3.3%, but will not be updated this week. Despite this, the CPI release is expected to fuel speculation around the Fed's next moves, particularly as three committee members called for an immediate interest rate hike.

The UK GDP numbers for June are also due out, with a year-on-year growth rate of 1.2% expected. This is down from 1.3% in the previous month and may have implications for the Bank of England's interest rates.