Week Ahead for FX, Bonds: U.S. Inflation Data in -2-

A week ahead of key inflation releases, emerging economies are facing higher energy costs, global trade tensions, and conflicts in the Middle East. Leaders are expected to discuss economic and financial cooperation alongside regional and global developments, with Chinese President Xi Jinping reportedly expected to attend—his first visit to India in seven years. In Taiwan, August consumer-price and trade data are set for release. Inflation is expected to have stayed elevated as Middle East conflict pushed up energy costs, while typhoons and heavy summer rains increased food prices. Economists project annual inflation between 2.3% and 2.5%, above the 2% level watched by the central bank. Persistent price pressures could support a rate hike. Taiwan’s export growth is expected to slow, with August growth around 30%, down from more than 60% at its peak. In Thailand, August inflation is expected to rise 2.31% year over year, faster than July’s 1.95%.