Key takeaways:

• Fresh inflation data set to shape interest rate policy

Global banking wobbles continue to cast shadows over the stock market, with futures pointing to a soft start for the ASX.

Economic Calendar and News

Inflation is back in the spotlight this week, both on home soil, and in the United States. The Australian Bureau of Statistics will publish the latest monthly CPI indicator on Wednesday. It remains to be seen whether consumer prices continued to cool, with last month reading of 7.4% already signifying major progress in the battle against inflation. 

Consensus figures suggest the new reading could come in at 7.1%, however, any signs that inflation accelerated could raise the case for the Reserve Bank of Australia to take decisive action and continue its rate hike campaign. 

The other component to that decision is retail sales figures from February, due Tuesday. As it stands, the Big Four have split on their views surrounding sales.Overseas, the Federal Reserve preferred inflation gauge comes into focus Friday when the Bureau of Economic Analysis (BEA) issues the latest Personal Consumption Expenditures (PCE) Price Index.

According to preliminary forecasts, the index is projected to have increased 0.5% last month, following an increase of 0.6% in January. On an annual basis, the index likely rose 5.1%, compared with a reading of 5.4% back in January. If so, that would represent the slowest annual gain since September, 2021. 

In terms of core prices, which exclude volatile food and energy costs, expectations point towards a likely gain of 0.4% month-over-month, or 4.7% year-over-year.

Investors closely watch the PCE Price Index because the US Federal Reserve argues it is a better indicator for tracking consumer spending in the world largest economy, and also updated more regularly than the Consumer Price Index (CPI).

A deluge of other US economic data on the way includes national home prices, retail inventories, wholesale inventories, consumer confidence, manufacturing activity, corporate profits, personal income and spending, as well as a final reading for Q4 GDP.In addition, a number of Federal Reserve officials will deliver speeches this week, just days after the central bank pushed ahead with another interest rate hike. The most noteworthy speech is likely to come from Vice Chair of the Federal Reserve Michael Barr, who will speak to the topic of bank oversight before the Senate Banking Committee on Tuesday and the House Finance Committee on Wednesday.

Stocks on watch

Global banking jitters could be set to persist over the coming days, with investors moving onto their next concern in Germany Deutsche Bank (NYSE: DB). That follows a sudden increase in the bank credit default swaps, ultimately raising the cost of insuring its debt against default. In response, EU officials sought to downplay that movement and shift attention to the bank capital strength and profitability, albeit the stock slumped 8.5% in Germany and initially weighed on the rest of the sector.Meanwhile, Australian retail sales data could have an influence over some of the names in the retail sector, particularly if it points to evidence suggesting either a slowdown is in play, or consumer spending is more resilient than expected. As such, some stocks that could be on watch include JB Hi-Fi (ASX: JBH), Premier Investments (ASX: PMV), Harvey Norman (ASX: HVN), and Myer (ASX: MYR).Days after it was cited as a short target, Block (NYSE: SQ) shareholders will be hoping the company share price can bounce back. Research firm Hindenburg published a scathing report on the payments company, raising allegations of facilitating fraud, taking issue with Block compliance and disclosures as far as its Cash App, among other items. Block immediately went on the defensive, taking aim at what it called misleading and inaccurate claims, while threatening legal action.One company in the spotlight following the results of the NSW election, where Labor swept to power, is Transurban (ASX: TCL). The toll road operator was at the heart of a central issue in the election campaign, with Labor pledging to refund Sydney motorists toll road expenses above a $60 per week cap from the beginning of next year for a period of two years. 

Some analysts have noted that Transurban could yield a small benefit from the plan if it encourages drivers to increase their use of toll roads once they pass the cap. Furthermore, a proposed overhaul of the toll road network and associated charges may entail compensation for the toll road operator per legal agreements.

Wealth management firm AMP (ASX: AMP) will hold its annual general meeting this week, and if media reports are anything to go by, shareholders may be intent on making a statement. Shareholders will vote on the company remuneration report, where short-term bonuses are largely linked to strategic and non-financial initiatives. This has reportedly prompted some investors to consider voting against the report, while shareholder groups have also taken aim at various aspects.A few results out of the US to keep an eye on over the coming days include biotech giant BioNTech (NASDAQ: BNTX), semiconductor manufacturer Micron Technology (NASDAQ: MU), and athletic apparel retailer Lululemon Athletica (NASDAQ: LULU).