U.S. inflation data came out differently than what was expected

U.S. inflation data came out differently than what was expected

The markets have been eagerly awaiting the US inflation data, but it has now been released & the rates are different than what experts had predicted.

In June, the Core Consumer Price Index (excluding food & energy) grew more slowly than anticipated on both a monthly & yearly basis. The overall Consumer Price Index also declined from the previous month & year.

The newly released data suggests that the Federal Reserve may reconsider its plan to raise interest rates at its next meeting. This is because inflation was lower than what experts had expected, which caused markets to anticipate a 25-point hike. Now, the Fed may choose to keep rates steady or even abandon another increase in future meetings.

After the release of the data, gold prices rose & the dollar index fell significantly.

Inflation data details

The Consumer Price Index (excluding food & energy) saw an annual increase of 4.8% in June, lower than the expected 5%. The monthly increase was 0.2%, also below expectations of 0.3%. This follows a 0.4% rise in May.

The consumer price index for June was 3%, which was lower than the expected increase of 3.1%. This follows a 4% increase in May.

In June, the main measure of inflation increased by 0.2%, lower than the expected rise of 0.3%. This was following a 0.4% increase in May.

Gold & Dollar now

Gold futures increased by 0.9% to reach $1,955 per ounce.

Spot contracts for gold rose by 0.89%, bringing the price per ounce to $1950.

The value of the dollar decreased by 0.7% & is now at 100,725 points on the index.