Inflation on the European side of the Atlantic is beginning to look a little stickier than central bankers initially forecast and investors will focus this week on reports from the US and UK that should give some clues about future policy from the Federal Reserve and Bank of England.
In the US we highlight the Fed's favoured measure of inflation, personal consumption expenditure (PCE) published by the Department of Commerce.
PCE is a broader measure of inflation than the consumer price index (CPI), as it takes into account the actual monthly expenditures of households on items that include durable goods, consumer products and services.
In April, consumer spending recorded its biggest increase in four months, rising 0.4% month on month. The core annual PCE, however, held at 1.5% – lower than expected and down from 1.8% earlier in the year after three straight declines.
This is well within the Fed's target rate of 2%, although the more broadly watched consumer price index rose to an annual 2.2% in April.
Analysts expect the May reading of the core PCE to rise to 1.6% as prices become a little more sticky globally.
BoE inflation report hearings
Bank of England chiefs appear in front of the Treasury Select Committee on Tuesday, as the scheduled testimony on the Bank's Quarterly Inflation Report is heard.
This regular testimony, usually a fairly minor event, becomes more interesting given the suddenly diverging paths of thought between the two key participants – Bank governor Mark Carney and its chief economist Andy Haldane.
Carney said last Tuesday that now was not the time for tightening policy, citing mixed signals on consumer spending and business investment.
A day later, however, erstwhile dove Haldane turned unexpectedly hawkish.
"Provided the data are still on track, I do think that beginning the process of withdrawing some of the incremental stimulus provided last August would be prudent moving into the second half of the year,” he said in a speech in Bradford.
With UK headline CPI now standing at 2.9% – above the 2.8% forecast the BoE expected it to peak at in the fourth quarter – others in the Bank's monetary policy committee (MPC) are getting edgy.
At this month's rate setting meeting, the MPC voted 5-3 to keep rates and asset purchases on hold – most had expected the result to remain 7-1 as at the previous meeting.
"Despite expectations shifting significantly over the past week, the first quarter-point rate hike is not fully priced in by the markets until December 2018," says Paul Hollingsworth at Capital Economics.
Don't expect fireworks at Tuesday's hearing, but any difference of opinion between Carney and Haldane will be informative.
The US and UK provide the focus for housing figures this week also.
In the US, Tuesday sees the S&P Case-Shiller home price index published and economists expect annual price growth to remain at March's level of 5.9% in April.
Mortgage applications, published on Wednesday by the US Mortgage Bankers Association are expected to be similarly flat, with a rise of 0.6% seen in June as in May, while pending home sales are seen rising 0.6% in May after falling 1.3% in April.
In Britain, 64,600 mortgages were approved in April, and economists believe a similar amount will get the nod in May, with median forecasts suggesting a slight dip to 64,000.
The data are also expected to show that consumer credit growth stalled in May too, with the figure staying flat at £1.5bn.
Meanwhile, after last month's dip in Nationwide's survey the annual gain in house prices, according to the UK building society is expected to dip to 1.9% from 2.1% in May.
There's plenty of forward looking sentiment data published this week.
On Monday, Germany's Ifo Institute publishes its monthly series on business confidence in the eurozone's largest economy.
The overall sentiment index is expected to dip to 114.2 in June, but that is from a record high of 114.6 in May after companies upwardly revised assessments of both their current business situation and their business expectations significantly, says Ifo.
The Munich-based think tank last week raised its growth forecasts for Germany, and now expects the economy to accelerate at a 1.8% pace this year, compared with its earlier forecast of 1.5%.
In the US on Tuesday, the Richmond branch of the Federal Reserve publishes its monthly manufacturing index.
On Friday Chicago PMI is forecast to dip to 58 in June from 59.4 in May, and Michigan consumer sentiment is seen staying put at 94.5.
In the eurozone on Thursday, a slew of sentiment data is published by the European Commission, including consumer confidence, industrial confidence and the economic sentiment indicator.
Best of the week's corporate announcements
It's a big week for consumer-facing companies on both sides of the Atlantic.
In the US food producer General Mills reports interims on Wednesday along with home furnishings retailer Pier 1 Imports, while on Thursday, sportswear manufacturer Nike and druggist Walgreens Boots Alliance both report quarterly earnings.
In the UK on Tuesday Carpetright, Photo-me International and Dixons Carphone report full-year results, while brewer Greene King reports its annual numbers on Wednesday.