TechFlow reported that according to Jinshi data, inflation in the United States generally cooled in June, further boosting the confidence of Federal Reserve officials that the Fed may cut interest rates soon. Data from the U.S. Bureau of Labor Statistics showed that the core CPI (excluding food and energy costs) rose 0.1% from May, the smallest increase since August 2021. The indicator rose 3.3% year-on-year, also the smallest increase in more than three years.
Economists believe that the core index is a better indicator of underlying inflation than the headline CPI. The headline CPI index fell 0.1% from the previous month and 3% from the same period last year, dragged down by falling gasoline prices, the first decline since the outbreak of the new crown epidemic. After the release of the US CPI data, traders increased their bets on the European Central Bank to cut interest rates, and now expect a 20 basis point rate cut in September. At the same time, the swap market has priced in an increase in the Federal Reserve's rate cuts this year.
