US inflation slightly increased in May, caution on rate cuts due to uncertainty over tariffs
From Yahoo Finance: 2025-06-22 14:32:00
US inflation likely increased slightly in May, with Fed Chair Jerome Powell emphasizing a cautious approach to rate cuts due to uncertainty over the economic impact of tariffs. Economists project a 0.1% rise in the core PCE price index, the tamest in five years. Fed officials foresee weaker growth and higher unemployment.
The government’s report on Friday is expected to show modest growth in household spending, with a focus on personal income data to gauge consumer spending ability. Other upcoming US data includes home sales, consumer confidence surveys, and economic indicators report. The Fed’s next policy decision is on July 30.
In Asia, inflation figures from four economies and data on industrial output, trade, and consumer demand will offer insights amid geopolitical tensions. Central banks will closely watch inflation data from Singapore, Malaysia, Australia, and Japan. Other economic indicators will provide a snapshot of trade-driven economies in the region.
In Europe, the UK, and Africa, business surveys and central banker testimonies are highlights. In the eurozone, flash PMIs for June, Germany’s Ifo business sentiment gauge, and inflation numbers for France and Spain are key. Central bankers in the UK and eurozone will address rate decisions and economic stimulus measures.
Latin America anticipates economic growth in Argentina, Mexico’s rate cut, and Brazil’s monetary policy report. Analysts expect solid growth in Argentina and potential rate cuts in Mexico and Colombia. Brazil’s central bank signaled steady borrowing costs, while Paraguay is expected to maintain its policy rate.
Oil and shipping markets could see volatility following US-Iran tensions, with Brent expected to surge if the Strait of Hormuz closes. Global benchmarks will be influenced, highlighting the impact on supplies from producers in the Persian Gulf. Traders are closely monitoring geopolitical risks to ensure stability in oil prices.
Read more at Yahoo Finance: Mild US Inflation Is Backdrop for Fed’s Powell on the Hill