U.S. Core CPI Data Hints at Cooling Inflation
On June 11, 2025, the U.S. Core CPI data revealed inflation rising slower than expected, fueling speculation about Federal Reserve policy shifts.
Key Figures
Year-over-Year (YoY): 2.8% (Expected: 2.9%)
Month-over-Month (MoM): 0.1% (Expected: 0.3%)
Core CPI, excluding volatile food and energy, is a critical measure of underlying inflation. The lower-than-forecast numbers suggest inflation is easing, nearing the Fed’s 2% target. This could give the Fed room to consider rate cuts, especially if future data confirms the trend.
Impact and Outlook
Markets welcomed the news, with investors eyeing potential Fed rate cuts in late 2025. Consumers may see relief from rising costs, though key expenses like housing remain high. The Fed will likely monitor further data before acting, balancing inflation control with economic growth.
This CPI report marks a key moment for the U.S. economy, hinting at progress in taming inflation. Stay tuned for Fed updates and market reactions.