The latest data released on Wednesday (June 12) showed that the U.S. unadjusted CPI annual rate in May was 3.3%, lower than the market expectation of 3.4%, falling to a three-month low.
The U.S. unadjusted core CPI annual rate was 3.4% in May, lower than the expected level of 3.5% and the lowest level since April 2021.
This is actually the first month with a good inflation report. We need a few more good reports like this to actually get the Fed to cut rates in September.
Market reaction: Short-term interest rate futures surged after the inflation data; now implying about a 70% chance of a Fed rate cut by September.
The author believes that: U.S. consumer prices unexpectedly fell in May, but amid continued strength in the job market, inflation may still be too high for the Federal Reserve to start cutting interest rates before September.
The U.S. Bureau of Labor Statistics data showed that the overall U.S. CPI was flat in May from the previous month, after rising 0.3% in April. The CPI has been on a downward trend since it released solid data in February and March.
Price pressures are likely to continue to ease as major retailers slash prices on goods ranging from food to diapers.
Author: Zhou Tong (Analyst) 12-06-2024
At 22:00 Hong Kong time, spot gold was quoted at US$2,324.60 per ounce.
#The above is only the author’s personal opinion and has nothing to do with the company’s position.
Hongfeng Gold Industry reminds you: Strategic suggestions are for reference only. There are risks in entering the market and you should invest with caution.