US CPI May

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Koushik Korampalli

June 16, 2024

Written by Koushik Korampalli

Est read: 0 minutes

US CPI inflation fell in May to 3.3%
- Core CPI hit 3.4%
- Expectations for CPI and Core CPI were 3.4% and 3.5% respectively
- This is a 0.1% fall from last months YoY CPI rate (3.4%)
- Change in CPI MoM is unchanged however
- Inflation is still falling but at a slower rate than the Fed had hoped
On Wednesday the Fed held interest rates at the 23 year high of 5.25%-5.5%
Following this they also signalled that they only plan 1 rate cut this year in September
- Earlier this year, expectations were predicting 3 rate cuts.
- Jerome Powell, chair of the federal reserve said that the progress made towards the 2% inflation target was not enough to justify a rate cut yet
- Forecasts predict that the rate cut will be quite modest.
Following the ECB and Canada’s rate cuts last week (See Edition 19), the UK and US are unexpected to change rates any time soon.
Despite the high interest rates, employment is increasing in the US
The US Economy seems to be moving in the right direction and the Fed’s caution seems to be the correct decision