Inflation is the focus this week with a U.S. report on consumer prices and Federal Reserve Chairman Jerome Powell’s testimony on Capitol Hill.
China’s exports, a key engine of the country’s economic growth, are expected to increase at a robust, albeit slower, pace in June. The deceleration is likely due to the Covid-19 resurgence in the country’s biggest export hub. Economists estimate imports also eased, leaving the trade surplus flat at $45.5 billion last month.
The U.S. consumer-price index is expected to post another significant gain in June, underscoring a run-up in inflation as the economy emerges from the coronavirus pandemic. The Federal Reserve in a report out Friday said supply chain bottlenecks for goods such as cars and appliances are creating inflation that could be “more lasting but likely still temporary.”