⚡️⚡️⚡️⚡️⚡️⚡️
US inflation data for May was released minutes ago -
Consumer Price Index (CPI): Monthly: 0.5%, in line with expectations. 🟡 Annual: 4.2%, in line with expectations, compared to 3.8% last month. 🟡
Core index (excluding food and energy): Monthly: 0.2%, better than the 0.3% expectation, compared to 0.4% last month. 🟢 Annual: 2.9%, in line with expectations, compared to 2.8% last month. 🟡
What do the numbers mean?
Although annual inflation rose to 4.2%, the figure was exactly in line with expectations and therefore does not constitute a negative surprise for the market. ✅
The positive point is that the monthly core index, which excludes energy, was lower than forecasts and stood at just 0.2%,
indicating that underlying inflationary pressures are moderating and inflation is concentrated in high energy prices due to tensions in the Middle East. 📡
This means a certain decrease in pressure on the Fed to raise interest rates, and therefore the data is expected to be received as positive to neutral for the stock market, especially in the technology and artificial intelligence sectors. 🔄
In response, US markets are moderating their declines. 📊