USD: CPI and core inflation guide Fed rate path – DBS
DBS strategist Philip Wee stresses that markets will scrutinize Kevin Warsh’s response to June US CPI data, with headline inflation expected to fall 0.1% month-on-month after a 0.5% rise in May due to lower Oil prices. However, he emphasizes that the key test is core inflation, forecast to remain sticky at 0.2% month-on-month and 2.9% year-on-year.
Headline and core CPI under scrutiny
"Headline inflation is widely expected to decline by 0.1% MoM in June, contrasting sharply from May’s 0.5% rise, due to the plunge in oil prices back to pre-war levels."
"However, the real test will likely be core inflation, which is expected to remain sticky and unchanged at the same 0.2% MoM (2.9% YoY) level as the previous month."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
The Foundation for the Study of Cycles welcomes all FXStreet members to have a look at our latest forex cycles research work! Please visit FXcyclestrader.com to register for free details.
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
