Lates News

Economists Durie and Wong expect overall CPI data for May in the United States to show strong performance, but they emphasize that core inflation, which is more critical for the Federal Reserve's interest rate outlook, should remain mild with its month-on-month increase in line with the 2% inflation target. Although supply shocks have driven up prices of airfares, appliances, and electronics, soft inflation in non-essential services suggests that consumers are cutting back on unnecessary expenses. A moderate core inflation data would ease market concerns about a Fed rate hike following better-than-expected May nonfarm payroll figures. Economists still anticipate the Fed to cut rates by 25 basis points in the fourth quarter of this year.