Futuo Foreign Exchange: The US CPI fell sharply in June, and the growth rate continued to hit a new low! Paper gold broke through the 450 mark as scheduled

      Wednesday evening, the high-profile US CPI in June was lower than expected and the previous value, with year-on-year growth falling for a year, the smallest increase since March 2021, and the pressure on the Federal Reserve to raise interest rates continued to ease.

　　Paper gold fell and rebounded on Wednesday, breaking through the 450 mark directly from 447 in the evening, reaching a maximum near 452 yuan.

　　Yesterday evening, according to the latest data released by the US Labor Department, the US consumer price index (CPI) rose by 3.0% year-on-year in June, down one percentage point from the previous value of 4%, the smallest increase since March 2021, and the expected value was 3.1%.

　　The index peaked at 9% in June last year and has since fallen for 12 consecutive months. On a month-on-month basis, the CPI rose 0.2% in June, compared with expectations of 0.3% and the previous value of 0.1%.

　　Excluding volatile food and energy prices, core CPI rose by 4.8% year-on-year in June, the smallest increase since August 2021, below expectations of 5.0% and 5.3% previously.

　　From a month-on-month perspective, the core CPI rose by 0.2% in June, while the expected value and previous value were 0.3% and 0.4% respectively.

　　UBS economist Peter Detmeister said that while there has been considerable progress in fighting inflation, it is still far from the pre-epidemic and Federal Reserve target levels.

　　In terms of sub-items, the housing sub-item, with a weight of more than one-third, remains the main force behind the rise in prices in the United States.

　　Last month, this sub-item contributed more than 70% of the overall price increase, up 0.4% month-on-month and up 7.8% from June last year.

　　In addition, car insurance, clothing, entertainment, and personal care also rose last month; airline tickets, communications, used cars, and household goods were among the price cuts.

　　After falling sharply by 3.6% in May, overall energy prices rebounded by 0.6% in June, with gasoline prices rising by one percentage point month-on-month, falling by 5.6% in May, and electricity prices rising by 0.9% last month, ending a three-month decline.

　　Although US inflation has been cooling month by month, neither Federal Reserve officials nor investors believe that the above report will affect the interest rate decision later this month.

　　It is reported that the Federal Reserve will announce the latest interest rate decision on July 26, according to the CME Group interest rate observation tool, traders bet that the probability of the Federal Reserve staying put is only 8.9%, and the probability of raising interest rates by 25 basis points to a 22-year high of 5.25% to 5.50% is 91.1%.