The annual rate of the US core PCE price index in May was 2.6%, which was expected to be 2.60% and the previous value was 2.80%. The release of this data has the following impacts:

Economic significance:

- Inflationary pressures eased: The core PCE price index fell from 2.8% in April to 2.6% on an annual basis, which means that the pace of price increases has slowed down and inflationary pressures have been alleviated to a certain extent. This is a positive signal for consumers, because the price pressure they face when purchasing goods and services has decreased, their actual purchasing power has been relatively strengthened, and the rate of increase in consumer costs has slowed down, which may encourage consumers to increase spending, thereby having a certain positive impact on economic growth.

- Changes in consumption and demand: Although inflationary pressures have eased, it is still necessary to consider the impact of other factors on consumption and demand, such as employment conditions, consumer confidence, and economic growth expectations. If consumers are still uncertain or worried about the future economic situation, they may not increase their spending significantly even if the rate of price increases slows down.

Impact on financial markets:

- Interest rate expectations: may affect the market's expectations of the Fed's future interest rate policy. Lower inflation data may reduce the urgency of the Fed to raise interest rates further. However, the Fed's interest rate decision is not only based on inflation data, but also on factors such as the job market and economic growth prospects. In this case, the market may expect the Fed to maintain interest rates stable or to have the possibility of cutting interest rates in the future, but the specific interest rate trend still needs to pay close attention to the Fed's statement and subsequent economic data.

- Asset price performance:

- Stock market: Generally speaking, mild inflation and a stable interest rate environment are beneficial to the stock market. Lower inflation pressure may reduce corporate concerns about rising costs and help maintain corporate profitability, thus having a positive impact on the stock market. However, the performance of the stock market is also affected by a combination of factors such as company performance, the global economic situation, and geopolitics.

- Bond market: It may affect the yield of the bond market. If the market expects interest rates to remain stable or fall, bond prices may rise and yields may fall accordingly.

- Foreign exchange market: It may also have a certain impact on the US dollar exchange rate. The relatively low inflation data may slightly reduce the attractiveness of the US dollar, but the US dollar exchange rate is also constrained by many factors, such as the interest rate difference between the United States and other countries, the comparison of economic growth prospects, and the global trade situation.