US inflation, housing and jobs: 4 key economic updates to watch this week

The US economy faces another important week of data releases, with inflation, housing sales and unemployment figures likely to offer fresh insights into the financial pressures facing consumers and businesses.The focus comes as American households continue to deal with high prices of everyday essentials, from petrol to groceries. The latest updates follow the US midterm elections, in which Democrats swept Congress, a week ago.The economic situation has also been shaped by the war between the US and Iran, which began in February and cut global oil supplies. The resulting rise in energy costs added to inflationary pressures that were already high because of President Donald Trump's unpredictable tariff conflict with much of the world.Economists, investors and policymakers will be watching the upcoming numbers to assess how the war and tariffs continue to affect prices, the housing market and employment.US inflation: October CPI and PPI figures in focusThe first major update will come on Tuesday, when the US releases its consumer price index (CPI) data for October. Economists expect inflation to rise to 3.9%, against 3.7% in September.The CPI tracks price movements across a broad range of goods and services. Inflation has remained above 3% since March, following the start of the US war with Iran in February. The conflict led to a sharp rise in energy prices, which pushed up petrol prices and shipping costs.Businesses will also get a fresh reading of their costs on Friday, when the October producer price index (PPI) is released. Unlike the CPI, the PPI measures price changes before goods and services reach consumers.The September PPI report had recorded its biggest increase since December 2022. It also showed how higher fuel costs, particularly for diesel, were feeding into shipping and warehousing expenses.However, crude prices fell sharply over the past week after the US midterm elections. Some believe Democrats, who routed President Donald Trump's GOP, will push to end the Iran conflict, which has sent energy prices soaring.US housing market: Home sales expected to remain weakThe housing market will be another area of focus, with high property prices and rising interest rates continuing to weigh on homebuyers.The National Association of Realtors will release its October existing home sales report on Thursday. Economists expect the number of previously occupied homes sold to remain largely unchanged from September.The slowdown is not new. Home sales have remained close to an annual pace of 4 million since 2023, well below the historical average of around 5.2 million.Property prices have continued to rise despite the sluggish sales activity. Home prices have recorded annual increases for 39 consecutive months. At the same time, the average interest rate on a benchmark 30-year mortgage is hovering near its highest level in almost three years.Borrowing costs could remain high as the Federal Reserve considers another increase in its benchmark interest rate at its December meeting. The move would be aimed at cooling inflation, which has remained stubbornly high.US jobs market: Weekly claims to follow October's job gainsEmployment data will provide another measure of the economy's health. The US is scheduled to release its weekly unemployment claims figures on Thursday.Economists track these numbers because they offer an indication of layoffs and can help assess where the jobs market is headed. The latest weekly data showed that unemployment claims remained at historically low levels.The broader employment market has held up, with US employers adding 165,000 jobs in October. However, there are signs that workers are facing growing pressure.Wage increases have been slow and have not kept pace with inflation, leaving households struggling with the rising cost of living. While layoffs have largely remained in check, workers who lose their jobs are finding it increasingly difficult to secure new employment.Corporate earnings: CoreWeave, Cisco and SkyDance results dueBeyond economic indicators, investors will also track a series of corporate earnings announcements for clues about the artificial intelligence industry, data centres and Hollywood.CoreWeave is scheduled to announce its quarterly results on Tuesday, following a difficult week for AI-related stocks. The data centre company is seen by some as more exposed to rising borrowing costs. Its shares dropped close to 20% over the past week.Cisco and Applied Materials will report their results on Thursday.In the entertainment industry, SkyDance is set to post its earnings on Monday. This will be its first earnings announcement since its Paramount studios completed an $81 billion takeover of Warner Bros. Discovery, creating a new Hollywood giant.Fix the confusing timeline and phrasingMake the opening sharper and more engagingYou use AI every day. Now get your AI Quotient. Take the AIQ test.