US CPI report for May was released today at 1:30 pm BST. While inflation data from the United States is always closely watched by market participants, today's report had additional gravity as two-day FOMC decision meeting begins today. Some saw today's data as a key to whether the FOMC will announce a hike or hold tomorrow at 7:00 pm BST. Market was expecting another slowdown in US CPI inflation.
Actual report turned out to be mixed - headline CPI slowed more than expected while core gauge slowed in-line with expectations. However, it should be said that expectations for core CPI were split between 5.2 and 5.3% YoY so the data can be seen as a slight beat.
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Open account Try demo Download mobile app Download mobile appReport can be seen as puzzling for FOMC but it also seems to be not hawkish enough to encourage US central bankers to deliver a rate hike tomorrow. Markets seem to share this view and reaction can be seen as dovish - USD dropped while gold and equity indices moved higher in a knee-jerk move.
US, CPI inflation for May
- Headline (annual): 4.0% YoY vs 4.1% YoY expected (4.9% YoY previously)
- Headline (monthly): 0.1% MoM vs 0.2% MoM expected (0.4% MoM previously)
- Core (annual): 5.3% YoY vs 5.3% YoY expected (5.5% YoY previously)
- Core (monthly): 0.4% MoM vs 0.4% MoM expected (0.4% MoM previously)
Headline US CPI continues to plunge while slowdown in core measure has slowed. Source: Macrobond, XTB
EURUSD spiked after release of mixed US CPI data for May. Source: xStation5
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