Huafu Securities: It is difficult for the Federal Reserve's policy to quickly shift towards easing.

In June, the year-on-year growth rate of the US CPI was 3.5%, lower than the expected 3.8% and the previous value of 4.2%. The core CPI rose by 2.6% year-on-year, down from the previous value of 2.9%; on a monthly basis, it increased by 0%, significantly below the expected 0.2%. In response to this, Huafu Securities stated that traditional consumption is weak, real estate demand remains low, and the low weight of the AI industry chain in CPI statistics limits overall growth. It is highly likely that future US core CPI data will continue to show a moderate decline. The core PCE indicator targeted by the Fed has been rising steadily in recent months, with the current reading still significantly above the 2% inflation target. Inflation stickiness has not completely dissipated, making it difficult for the Fed's policy to quickly shift to easing.