Economics week ahead

Wells Fargo Research Team Wells Fargo

Next week, we expect U.S. inflation to show a modest pickup in headline prices due to higher energy costs, while underlying inflation pressures remain relatively contained. Existing home sales likely weakened further as elevated mortgage rates continue to weigh on affordability and demand.

Abroad, the ECB is expected to deliver a 25 bps rate hike while assessing whether energy and food inflation spreads more broadly. In the U.K., growth likely moderated in July, largely reflecting payback from June's strong rebound. Mexico's inflation likely edged higher, supporting an extended pause from Banxico, while Brazil's inflation likely eased further, supporting another rate cut from the central bank.

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Wells Fargo Research Team

Wells Fargo

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