PT Solid Gold Berjangka | US Inflation Broadly Cools in Encouraging Sign for Fed Officials
Ekonomi AS CPI Core CPI CPI m/m CPI y/y PT Solid Gold Berjangka SG Berjangka Solid Group PT SGB
Solid Gold Berjangka | The key measure of underlying U.S. inflation resigned for the second month in May, a pleasant surprise for Fed officials looking for signs that they could start lowering interest rates.
The so-called core consumer price index, excluding food and energy costs, rose 0.2 percent from January, according to the Bureau of Labor Statistics. According to data on Wednesday, the year-on-year measure rose 3.4%, cooling to the slowest pace in more than three years.
Economists see the core gauge as a better indicator of underlying inflation than the overall CPI. That measure was flat from the same month last year — the most tamest in almost two years, dragged by cheaper gasoline — and 3.3% from the previous year.
This figure may indicate the early stages in which inflation resumed its downward trend with a slowdown in the core Consumer price index in March 4. But policymakers have stressed that they need to see months of price pressure recede before considering lowering interest rates, especially as the latest jobs report reignites debate about how restrictive policies are in practice.
The report lands just hours before the Federal Reserve is set to conclude a two-day policy meeting in Washington. Chair Jerome Powell said it happened earlier when key data was released during the meeting, and depending on what the cpi data shows, the authorities can adjust their quarterly economic forecasts.
Stock futures and government bonds rebounded across the curve, cutting two- and 10-year yields by about 14 basis points. Traders have been fully pricing in two rate cuts by the Federal Reserve this year, and the first move is coming in January.
Source: Bloomberg