July 11, 2019

US core CPI inflation up to 2.1% in June. Powell’s Congress hearing points to a 25 bps cut.

Share on facebook
Share on twitter
Share on linkedin
Share on email

In Short

A higher than expected increase in the shelter and medical services components component lifted core CPI inflation to 2.1% yoy. The collapse in the energy component compressed the headline rate to 1.6%.
US core CPI inflation up to 2.1% in June. Powell’s Congress hearing points to a 25 bps cut.
Share on facebook
Share on twitter
Share on linkedin
Share on email

Highlights:

  • A higher than expected increase in the shelter and medical services components component lifted core CPI inflation to 2.1% yoy. The collapse in the energy component compressed the headline rate to 1.6%.
  • The sectoral pattern is consistent with the fading of some transitory weakness, but the cyclical component of inflation is not reacting to labor market slack. Core inflation will undershoot the Fed target this year too.
  • Meanwhile, inflation expectations remain subdued, also due to low oil prices and higher worries on growth.
  • The weakness of inflation expectations was duly noted in the minutes of the June meeting, while Powell before the Congress stressed the risks around a still solid outlook. The tone appears consistent with a 25 bps cut in the July 31 meeting.

Download the full publication below

US CORE CPI INFLATION UP TO 2.1% IN JUNE. POWELL’S CONGRESS HEARING POINTS TO A 25 BPS CUT.

Also interesting

virtual-money-concept,-gold-bitcoins-digital-cryptocurrency-use-blockchain-technology
00:02:48
April 9, 2021
Fund Manager Video

Aperture Investors | European Markets Update

Blue-sky-white-clouds-temperature-hot-thermometer
00:06:05
April 7, 2021
Podcast

The Spotlight ǀ Generali Investments Podcast: Some like it hot

Antique golden compass
April 7, 2021
Market Compass

Market Compass April 2021