Hotter-than-expected Japanese consumer inflation increases the odds of a Bank of Japan rate hike in July, ING analysts said in a Friday note, especially as core inflation hit an over two-year high.

Oil prices dropped for a fourth consecutive session on Friday and were set for their first weekly decline in three weeks, weighed down by renewed supply pressure from another possible OPEC+ output hike in July.

U.S. business activity improved to a two-month high in May despite companies having to contend with inflationary pressures stemming from President Donald Trump’s sweeping tariff agenda, a survey from S&P Global showed on Thursday.

The dollar headed for its first weekly fall in five weeks against major currencies on Friday and long-dated Treasury yields stayed elevated, as U.S. debt concerns that have mounted for years started driving moves in currencies and global debt.

U.K. inflation jumped sharply in April, hitting its highest level in over a year, likely causing the Bank of England to delay any further interest rate cuts.

Britain’s economy will grow a bit faster this year than thought a month ago, a Reuters poll of economists predicted, partly due to unexpectedly strong growth in the first quarter that was not expected to persist.