CITIC Securities: US June CPI Slows to 3.5%, Core CPI Flat at 0.0% MoM

CITIC Securities said US June consumer price inflation slowed to 3.5% year on year from 4.2% in May, while core CPI rose 0.0% month on month after a 0.2% increase previously, with both measures coming in below market expectations. The report said the moderation was driven mainly by a sharp pullback in energy costs, along with a monthly decline in core goods and slower growth in the shelter component of core services, according to Jiemian News. It added that although a fragile US-Iran agreement leaves oil prices vulnerable to upside risk and keeps some upward pressure on US inflation, overall price pressures remain manageable, and CITIC Securities still sees a relatively high probability that the Federal Reserve will leave policy rates unchanged this year.