This week’s economic data is set to shed fresh light on the inflation picture as growth fears intensify. The main event is the Consumer Price Index (CPI) report, which will test whether inflation has continued to accelerate or if pressures on consumers and businesses are causing price growth to ease.

Meanwhile, other key releases will add context to the labor market and broader economic uncertainty, with policy challenges looming ahead of a potential government shutdown.

Policy uncertainty is weighing on the economy – stemming from the new administration’s tariff stance and the looming government shutdown, as the current spending law expires on March 14. Shocks related to policy uncertainty act as negative supply shocks, raising prices while simultaneously dampening household consumption and business investment.