Synopsis

US inflation data eased in June, prompting investors to lower interest rate hike bets. China's economy slowed more than anticipated, increasing pressure for government spending while UK consumer-facing services grew in May, driven by retail sales and recreation sectors.

US inflation data was tamer than expected in June, which led investors to lower bets on a Federal Reserve interest-rate increase later this month. Meanwhile, the Chinese economy slowed more than expected in the second quarter, putting pressure on the government to ramp up public spending to meet its target growth for this year.

And in Venezuela, monthly inflation accelerated sharply in June, adding to the blow already facing families following the twin earthquakes last month.

Here are some of the charts that appeared on Bloomberg this week on the latest developments in the global economy, markets and geopolitics:

US

Bloomberg

US consumer prices declined in June for the first time in six years and a key gauge of underlying inflation was little changed, taking some pressure off the Federal Reserve to raise interest rates. The report suggests a slide in prices at the pump in June offered consumers some relief as the worst of the Iran war energy shock started to fade.

Bloomberg

US retail sales rose modestly in June, dragged down by a drop in gas-station receipts that masked strong gains at some merchants. Cheaper gas offered households some breathing room for discretionary purchases last month, while sales promotions across major retailers and the FIFA World Cup may have also lifted sales.

Bloomberg

US consumer sentiment rose in early July to a five-month high as lower gasoline prices boosted morale. Households’ perceptions of their financial situation and the broader economy improved.

Europe

Bloomberg

UK consumer-facing services grew 0.5% in May, driven by a 1.2% increase in retail sales and the sport, amusement and recreation sectors. Retail sales were helped by promotions and warm weather.

Bloomberg

French unemployment is forecast to reach its highest level since 2019, raising fresh concerns over the fragility of the euro area’s second largest economy. The jobless rate is expected to reach 8.2% in this year, according to the median estimate of 16 economists surveyed by Bloomberg News.

Asia

Bloomberg

China’s economy slowed more than expected in the second quarter to the weakest in more than three years, raising pressure on policymakers to speed up public spending to ensure their annual growth goal is met. Gross domestic product grew 4.3% from a year ago, below the bottom of this year’s official target range of 4.5% to 5%.

Bloomberg

South Korea’s central bank raised interest rates for the first time in more than three years and flagged more hikes to come — without offering guidance on the likely timing of the next move. The move marks the start of a new policy cycle after officials cut borrowing costs four times since late 2024.

Emerging Markets

Bloomberg

Venezuela’s monthly inflation more than doubled in June, deepening the hardship for families already reeling from the devastation caused by the twin earthquakes last month. The acceleration complicates interim President Delcy Rodríguez’s reconstruction efforts and marks a setback for her government’s strategy of containing inflation by stabilizing the local currency.

Bloomberg

India’s stronger-than-expected inflation reading for June has left policymakers facing a more uncertain outlook, with renewed tensions around the Strait of Hormuz threatening to push up oil prices and a developing El Niño raising the risk of higher food costs.

World

Bloomberg

South Korea and Ethiopia raised interest rates this week. Meanwhile, Canada kept borrowing costs unchanged. Angola lowered rates.