The preliminary US GDP report for the first quarter of this year will be one of the most important data releases for the rest of this week.

In the UK, the CPI inflation report shows a significant decrease in overall inflation rate in April, dropping to 8.7% year-on-year. However, this number is still higher than the 8.2% expected by economists.

The Reserve Bank of New Zealand (RBNZ) has raised borrowing costs by 25 basis points as expected. The Board of Directors of the Federal Reserve of New Zealand emphasized in its post meeting announcement that "for the foreseeable future, OCR needs to remain at a restrictive level to ensure that consumer price inflation returns to the annual target range of 1-3%, while supporting maximum sustainable employment

Preliminary GDP Report for the First Quarter of 2023 in the United States

The United States Bureau of Economic Analysis (BEA) is expected to release preliminary data on GDP growth in the first quarter of 2023. Economists predict that the quarterly growth rate of US GDP may reach 1.1%. If confirmed, this number will match the figures for the fourth quarter of 2022.

The Federal Reserve Board will consider GDP data as central bank policymakers attempt to address inflation by tightening monetary policy. A report released by the National Association for Business Economics (NABE) shows that the expected GDP growth rate for this year is 0.4%, lower than the 0.9% in 2022. The NABE report states: "Interest rates are expected to decrease, inflation is expected to slow down in 2024, while employment growth is expected to slow down and unemployment rate will rise

Tokyo CPI Inflation May Report

The Japan Bureau of Statistics will release the May Tokyo CPI inflation report on Friday morning. Market analysts expect the annual inflation rate of Tokyo's CPI to rise to 3.9%. In April, the CPI data was 3.5%. Analysts surveyed by Reuters expect core consumer inflation in Tokyo, which is considered a leading indicator of national trends, to reach 3.3% in May.

Earlier this month, the annual inflation rate of the national core CPI reached 3.4%. This data has improved market expectations for the Bank of Japan to launch large-scale stimulus measures this year. Economists from BNP Paribas pointed out that "the Bank of Japan may have no choice but to raise its inflation forecast for July. As inflation expectations rise, the likelihood of policy adjustments may increase

Retail sales in the UK in April

In the UK, the Office for National Statistics (ONS) will release its April retail sales report. Economists say that retail sales decreased by 2.8% year-on-year in April. The high cost of living seems to have had an impact on retail sales, as the UK household budget is affected by high inflation, and the Bank of England (BoE) rate hike has not improved the situation for consumers.

A report on retail economics states that "the overall consumer intention of the retail industry is colliding with the consumption priorities in areas that were previously missed during the pandemic, including the upcoming summer vacation. This means showing a greater degree of caution in consumption. Shoppers who want to purchase essential goods at low prices are turning to discount stores to reduce weekly food store costs

April Report on Durable Goods Orders in the United States

The durable goods order report for April is the last important data released by the United States this week. Market analysts say that although the Census Bureau's orders increased significantly by 3.2% in March, orders in April decreased by 1.1% month on month. The durable goods orders released by the US Census Bureau measure the cost of durable goods orders received by manufacturers, which refers to goods planned to be used for three years or more, such as cars and appliances.

In a paper released by the Brookings Institution based in Washington, former Federal Reserve Chairman Ben Bernanke and Olivier Blanchard, who served as the Chief Economist of the International Monetary Fund from 2008 to 2015, the surge in inflation since 2021 is mainly due to shortages in the energy market and cars and other durable goods.