Energy Costs Fuel Modest US Inflation Bump Amid ECB Rate Hike

The US economy is expected to show a modest increase in headline inflation next week, driven by higher energy costs. According to market analysts, underlying price pressures remain relatively contained, despite this uptick.

Existing home sales are also seen weakening further due to elevated mortgage rates, which continue to erode affordability and curb demand.

In Europe, the European Central Bank (ECB) is expected to raise interest rates by 25 basis points as it gauges whether energy and food inflation is broadening. This move comes as the UK reports slower growth in July after a rebound in June.

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.