The new data arrives ahead of the Federal Reserve’s next announcement on its key rate, scheduled to take place tomorrow (June 14), with the continuing downward trend arguably giving the central bank further room to hit pause on its rate-hiking trajectory.
Still, the core CPI (consumer price index) – a measure the Fed follows closely – continued to tick upwards, rising by 0.4% on a monthly seasonally adjusted basis for the third month in a row.
That gauge measures the changes in the price of goods and services without taking food and energy into consideration.
Nonetheless, the Fed is widely expected to leave its key rate unchanged tomorrow, having already introduced hikes at 10 consecutive meetings. The central bank’s chairman Jerome Powell has recently signalled his preference to skip a June increase and wait for July data before deciding whether a further move is needed.
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