US Inflation: Without Notable Decline
US consumer prices rose by 0.1% m/m (weaker than expected 0.0%). Annual inflation slowed from 3.2% to 3.1%. Core (excluding food and energy) rose 0.3% m/m, maintaining its annual growth rate of 4.0%.
Overall inflation has stabilised at levels above 3% y/y since June, with no meaningful downward progress. The nominal CPI has added over 1.4% in the meantime.
The core index stabilised at twice the target. Monthly growth rates for the last six months also show no signs of slowing down.
Strictly speaking, with this data, the Fed has no reason to sing a victory song over inflation on Wednesday night. This is moderately positive data for the US dollar, justifying the Fed’s ‘rates higher for longer’ motto. Nevertheless, the markets seem to have saved the main reaction for the FOMC outcome on Wednesday evening, as in the end, it is not so much the data that matters but the central bank’s interpretation of it.
By the FxPro Analyst Team
SpaceX IPO: Great Company, Greater Expectations
EBC Markets Briefing | Energy prices jump after closure of Strait of Hormuz
Stock and gold selloff eases; ECB and US PPI eyed next
US CPI Tops 4% for First Time Since 2023; Oil Extends Gains, Gold Drops Sharply
EURUSD (4H) in a bearish consolidation
SP500 Extends Recovery as Futures Gain and Treasury Yields Ease
The crypto market is consolidating rather than falling
