Rose a basic indicator last month inflation to USAunderlining the challenge faced by US Federal Bank President Jerom Powell and his associates to balance prices and increasing risks.
An report to be published on Friday, August 29, 2025, is projected to show that the price index of personal consumer spending, with the exception of food and energy – Fed’s preferred index for underlying inflation in the US – increased by 2.9% in July compared to last year. This would be the fastest annual rate in five months. On a monthly basis, the so -called basic indicator is expected to increase by 0.3% for a second month.
Speaking on Friday, August 22, 2025 at the Fed Annual Conference in Jackson Hall, Wyoming, Powell said there was a greater risk of shaking the job market, although inflation concerns are remaining. And while he said that the impact of the highest tariffs on prices are “more clearly visible”, it is also reasonable to expect the impact to be short -lived.
Investors will attend Fed officials’ statements at public events next week to appreciate their willingness to reduce interest rates in September. Governor Christopher Waller and Fed John Williams’ regional banks, Lorie Logan and Tom Barkin have planned to speak.
Along with July 2025 inflation data, Friday’s report is expected to show the largest increase in household spending on goods and services since March. Economists will also consider personal income data in order to assess consumers’ ability to continue their expenditure – a key lever of economic growth.
On Thursday, August 28, 2025, the US will publish revised data on the gross domestic product of the second quarter. The GDP report is projected to show that personal consumption has recovered at a moderate pace after a slow beginning in 2025.
Further north, Canada’s GDP figures for the second quarter to be published on Friday may show the negative effects of the US trade war – just when Ottawa tends to friend Donald Trump. Bloomberg Economics provides for a decline in production in the midst of deterioration of the trade balance and storage. The average estimate is for a fall of 0.7%.
Elsewhere, India will also publish GDP for the second quarter, South Korea and the Philippines will determine interest rates, while the German IFO report will give indications of how businesses in Europe’s largest economy respond to trade unrest.