Eagerly awaited US inflation data is due today, Wednesday, 12 July 2023 – preview

<p>The data comes from US Bureau of Labor Statistics (BLS), CPI for June 2023</p><ul><li>due at 1230 GMT, which is 8.30 am US Eastern time:</li></ul><p><a href="https://www.forexlive.com/news/us-cpi-preview-shelter-and-services-cpi-will-be-key-20230711/" target="_self" rel="follow">US CPI Preview: Shelter and services CPI will be key</a></p><p>Via ANZ:</p><ul><li>We expect both headline and core CPI inflation to rise by 0.3% MoM in June. Such an outcome would still be too hot for the Fed. Although goods price inflation should remain subdued and further reductions in rent-based inflation are likely to occur, the Fed needs to see more of a slowdown in core services ex-housing to be confident overall inflation is headed to 2% sustainably. For this to happen labour market conditions need to soften further and with it wages growth.</li></ul><p>Via Deutsche Bank:</p><ul><li> We expect a +0.20% MoM gain for headline CPI (vs. +0.12% previously) and a +0.28% increase for core (vs. +0.44%) which would have the YoY rate for the former dropping by a full percentage point to 3.1%, while that for the latter would drop by 30 bps to 5.0%, both in line with consensus. </li><li>This would leave the three (4.6% vs. 5.0%) and six-month annualised (4.8% vs. 5.1%) core rates still well above the Fed’s target.</li></ul><p>Bolding above is mine. </p>

This article was written by Eamonn Sheridan at www.forexlive.com.