Inflation, housing, jobs and corporate earnings will dominate the business calendar this week

Inflation continues to tighten its grip on consumers and businesses this week, as the U.S. government releases key economic reports. The latest projections indicate that inflation increased to 3.9% in October from 3.7% in September, according to the consumer price index. This marks the highest rate of inflation since March, a trend that has been driven by higher energy prices and global supply chain disruptions.

Economists are closely monitoring these indicators to gauge the ongoing impact of the U.S.-Iran war and previous trade disputes on prices. The housing market remains plagued by high prices and rising interest rates, with existing home sales expected to remain stagnant after hitting a 4-million annual pace in 2023. Home prices have increased for 39 consecutive months, and the average 30-year mortgage rate is at its highest level in nearly three years.

The Federal Reserve may be pressured to maintain high interest rates to combat inflation. Despite job losses remaining historically low, the job market has shown signs of stress, with wage growth lagging behind inflation, making it increasingly difficult for households to cope with rising prices. Corporate earnings are also set to be revealed, shedding light on the state of artificial intelligence, data centers, and the newly merged Hollywood studio Warner Bros. Discovery.