Inflation updates dominate this week’s calendar, along with a review of the housing market and more employment data in USA.
The latest developments come a week after voters across the United States gave Democrats complete control of the Congress in the midterm elections, as persistently high prices for everything from gasoline to groceries choke households and businesses. America’s war with Iranwhich began in February, reduced global oil supplies and stoked inflation that already remained stubbornly high amid the president’s unpredictable tariff conflict Donald Trump with much of the world.
Economists, investors and policymakers are closely watching economic indicators to better understand the ongoing impact of war and tariffs on prices, housing and jobs.
Here’s a look at some of the key reports coming out in the coming week.
Inflation strengthens its control over consumers and companies
Rising prices remain a pressure point for the broader economy, and recent updates are not expected to show that has changed.
The United States will release the October consumer price index (CPI) on Tuesday, and economists project the inflation rate rose to 3.9% from 3.7% in September. The index measures price changes for a wide range of products and services. The CPI has shown inflation above 3% since March, a month after the start of the US war with Iran and the sharp spike in energy prices that shook gasoline prices and transportation costs.
The United States will release the October producer price index on Friday, which captures inflation before it reaches consumers. The September report showed the largest increase since December 2022, and that data indicates that rising fuel prices, particularly diesel, continue to push up transportation and storage prices.
However, crude oil prices plummeted in the last week, following the midterm elections in the United States. Many believe that the Democrats, who comprehensively defeated the Republican Party of President Donald Trump, will push for an end to the conflict with Iran that has skyrocketed energy prices.
The housing market in the United States is not in a good moment
The housing market continues to be weighed down by high prices and rising interest rates. Home sales have remained stagnant, and the most recent update on sales of previously occupied homes is expected to reflect that trend. The National Association of Realtors will release its October report on existing home sales on Thursday. Economists expect it to remain virtually unchanged from September.
For the most part, home sales have hovered around an annual pace near 4 million since 2023, well below the historical norm, which is closer to 5.2 million. House prices have increased on an annual basis for 39 consecutive months and the average rate on the benchmark 30-year mortgage remains near its highest level in almost three years. Mortgage rates are likely to remain elevated as the Federal Reserve weighs another increase in its benchmark interest rate at its December meeting in a bid to cool persistently high inflation.
Unemployment update after big gains in October
The United States will release its weekly update on jobless claims on Thursday, which serve as a proxy for layoffs. Economists follow the weekly data because it can be a sign of the direction the labor market will take. The most recent weekly update shows claims remain at historically low levels.
The overall labor market remains resilient. American employers created 165,000 new jobs in October. The labor market has been remarkably resilient, but has shown signs of strain.
Wage growth has been slow and has not kept pace with inflation, making the pressure from rising prices even more painful for households. And although layoffs have largely been kept under control, it is increasingly difficult to find work if you lose your job.
Corporate results keep coming
A handful of notable corporate results will be released next week that are likely to provide clues about the state of artificial intelligence and data centers, as well as Hollywood.
After a brutal week for AI, CoreWeave will report its quarterly results on Tuesday. The data center company has been seen by some as more vulnerable as borrowing costs rise. Its shares fell about 20% in the last week. Cisco and Applied Materials will report results on Thursday.
SkyDance will publish results on Monday, the first since its Paramount studios closed an $81 billion acquisition of Warner Bros. Discovery, ushering in a new Hollywood giant.
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This story was translated from English by an AP editor with the help of a generative artificial intelligence tool.
Source: www.independentespanol.com
