US CPI is weaker than forecast, the possibility of the Fed lowering interest rates increases

The US consumer price index (CPI) did not increase in May, showing that the "pincer" of inflation has eased on the world's largest economy. The possibility that the US Federal Reserve (Fed) will lower interest rates in September has also increased...

A report from the Bureau of Labor Statistics of the US Department of Labor on June 12 showed that CPI - a measure of the price of a basket of goods and services in the economy - was flat in May compared to April, but increased. 3.3% over the same period last year. Previously, in a survey by Dow Jones news agency, experts forecast that CPI would increase by 0.1% this month and increase by 3.4% over the same period in 2023.

Core CPI, an index excluding energy and food prices, increased 0.2% compared to April and increased 3.4% compared to the same period last year, both 0.1 percentage points lower than expected. Corresponding reports are 0.3% and 3.5% respectively.

“Finally, there was positive optimism, with both headline and core inflation lower than forecast. Inflationary pressure at gas stations has been relieved, but house prices continue to increase and are the main cause of inflation. Until housing prices start to fall, there will be no sharp decline in inflation," said economist Robert Frick of Navy Federal Credit Union.

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