Investors watching US CPI data, minimal price increase in May, potential interest rate cut

From The Financial Express: 2024-06-11 21:37:00

Global investors are closely monitoring US CPI data, with inflation dropping to 3.4% in April from a peak of 9.1% in June 2022. The US Fed is waiting for CPI to hit 2% before considering a rate cut, as CPI has been stagnant at 3.2% for months.

The Bureau of Labor Statistics will release May 2024 CPI data on June 12, 2024, at 8:30 A.M. Eastern Time.

In April, US CPI rose by 0.3% monthly, with annual inflation at 3.4%. Core inflation (excluding food and energy) increased by 0.3% monthly and 3.6% annually.

Forecasters predict minimal price increases in May, possibly leading to a future interest rate cut by the Federal Reserve, but not solely based on this data.

Expectations for May show a minor price increase of 0.1%, keeping annual inflation at 3.4%. The core index is expected to decline to 3.5% from 3.6% due to falling gasoline prices.

The Federal Reserve may consider an interest rate cut later in the year if inflation continues to cool, with progress seen in the second quarter.

The Fed is looking for confirmation that consumer prices are on track for a 2% annual rate before lowering interest rates, maintaining rates at a 23-year high since July.

US Fed’s FOMC meeting is ongoing, with Chief Powell set to announce no change in policy rates on June 12 at 8 PM ET.



Read more at The Financial Express: US CPI data and FOMC meeting: Check date, time and expectations – Investing Abroad News