Investors will be paying close attention to U.S. inflation data this week, ahead of a two-day Federal Reserve Board meeting beginning June 28.

The U.S. producer-price index for May is scheduled to be released Tuesday and on Wednesday the consumer price data are due out.

Both reports will help determine whether the Fed might pause its campaign of interest rate hikes.

Here at home, Statistics Canada releases data on Canadian capacity utilization during the first quarter on Monday.

On Wednesday, StatsCan releases data on manufacturing shipments for April. Economists expect to see a rise of 0.4%.

South of the border

On Tuesday, the U.S. Commerce Department releases retail sales figures for May. Economists forecast a rise of 0.1%.

Separately, U.S. Commerce releases business inventories data for April. Economists forecast an increase of 0.6%.

Meanwhile, the U.S. Department of Labor reports on the producer price index for May. Economists expect an increase of 0.4% from the previous month.

On Wednesday, the U.S. Department of Labor releases the consumer price index for May.

Also Wednesday, the U.S. Federal Reserve releases its “beige book” report on regional economic activity.

Data on U.S. industrial product is released on Thursday. Industrial production is forecast to have risen 0.2% in May, compared with 0.8% in April, while capacity utilization holds around 82%.

On Friday, the United States releases current account figures for the first quarter. Economists forecast a deficit of US$222 billion, compared with a fourth-quarter, 2005, deficit of US$224.9 billion.

Meanwhile, the consumer-sentiment index, from a University of Michigan survey, is seen edging down a bit from May, when attitudes soured due to rising fuel prices and interest rates.

Earnings

Lehman Brothers reports results on Monday, the first Wall Street brokerage out of the gate. Wall Street firms’ earnings are forecast to be up sharply from a year earlier but down from the record results of the first quarter.

Goldman Sachs Group Inc. reports its second-quarter results on Tuesday.

On Wednesday, Transcontinental Inc., the parent company of Investment Executive reports second-quarter results.