Summary:
In May, US consumer prices were flat as cheaper gasoline offset higher rental costs, but inflation remains too high for Fed rate cuts.
US CPI June
12/7/2024 (Thu)
Previous: 3.3% Forecast: 3.1%
US consumer prices were unexpectedly unchanged in May as cheaper gasoline and other goods offset higher costs for rental housing, but inflation remains too high for the Fed to start cutting interest rates before September.
The report also showed underlying inflation pressures abated significantly, with the cost of motor vehicle seeing the first and biggest monthly drop since October 2021.
Biden welcomed the benign CPI report, saying it showed "progress on lowering inflation." Price control could be among the factors that will determine the outcome of the November’s presidential election.
Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.
EUR/GBP rises above 0.8500 as soft UK data boosts BoE rate cut bets, while hawkish ECB remarks provide support for the euro.
2025-06-13
As the decline of US dollar hegemony intensifies, US-China trade tensions ease but tariffs stay high, raising global economic risks.
2025-06-13
London's FTSE 100 hit an all-time high on Thursday, led by energy shares, but geopolitical concerns limited further gains compared to European peers.
2025-06-13
