US CPI: Core Inflation Cools and Freezes Hike Prospects

June US inflation data came in softer than expected, with core CPI falling to 2.6%. This data effectively mitigates the immediate risk of a Federal Reserve rate hike at the July meeting.

Key Takeaways

• 1.US core CPI slowed to 2.6% yoy in June, reducing the likelihood of a July Fed rate hike.
• 2.Future Fed policy hinges on Middle East geopolitical developments, energy price volatility, and incoming economic data.

Table of Contents

• US CPI: Core Inflation Cools and Freezes Hike Prospects
• Berenberg Macro View
• Fed on hold, all eyes on September

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