US Inflation Expected to Ease in June, but Fed Rate Hike Risks Persist Amid Middle East Tensions 
South Korea Central Bank Set to Raise Interest Rates as Inflation Stays Elevated 
Australia Consumer Sentiment Rises in July as Fuel Price Relief Lifts Confidence 
China Home Prices Fall Again in June Despite Slower Pace of Decline 
Gold Price Holds Near Record High as Cooling U.S. Inflation Offsets Fed Caution 
US Stock Futures Hold Steady as Soft Inflation Data Eases Fed Rate Hike Fears 
Australian Business Conditions Hold Steady as Easing Cost Pressures Face New Oil Price Risks 
Gold Price Holds Near $4,000 as Middle East Tensions and Fed Rate Hike Bets Grow 
China Q2 2026 GDP Misses Forecast as Weak Domestic Demand Offsets Export Strength 
Singapore GDP Grows 5.7% in Q2 2026 as AI-Driven Manufacturing Boosts Economy 
Dollar Eases as Middle East Conflict, Fed Outlook and Japan Pension Policy Drive FX Markets 
Asian Currencies Stay Rangebound as Middle East Tensions, Weak China GDP Weigh on Sentiment 
Goldman Sees Foreign Investors Driving India Stock Market Recovery 
Asian Stocks Slide as Oil Surge, U.S.-Iran Tensions and Fed Rate Bets Weigh on Markets 
China Trade Surplus Hits $125.6 Billion as June Exports, Imports Smash Forecasts 
Asian Stocks Rise as Softer U.S. Inflation Boosts Sentiment Despite Middle East Tensions 
U.S. consumer prices rose less than expected in January, offering modest relief to households as gasoline and rental costs eased. However, persistent increases in service-related expenses suggest the Federal Reserve may hold off on cutting interest rates until later in the year.
According to the Labor Department, the Consumer Price Index (CPI) increased 0.2% in January, following a 0.3% rise in December and below economists’ forecasts of 0.3%. On an annual basis, inflation slowed to 2.4%, down from 2.7% in December. The moderation was largely due to falling gasoline prices, which dropped 3.2% month-over-month, and softer shelter costs, including rents and hotel stays, which rose 0.2%.
Food prices climbed 0.2% in January after jumping 0.7% in December. Grocery prices edged higher, though declines in beef, eggs, coffee, and fresh produce helped offset increases in cereal and baked goods. Despite monthly relief, food prices remain 2.9% higher than a year ago. Electricity prices dipped slightly in January but surged 6.3% year-over-year, partly reflecting rising energy demand from data centers supporting artificial intelligence infrastructure.
Core CPI, which excludes volatile food and energy prices, increased 0.3% after a 0.2% gain in December. Service inflation remained firm, with airline fares soaring 6.5% and hospital services rising 0.9%. Personal care, recreation, and communication services also recorded notable increases. Meanwhile, used car prices fell 1.8%, helping keep overall core goods prices stable.
Year-over-year core inflation slowed to 2.5%, its lowest level since March 2021. Still, both CPI and the Federal Reserve’s preferred Personal Consumption Expenditures (PCE) price index remain above the Fed’s 2% target. Strong job growth and a 4.3% unemployment rate further reduce urgency for immediate rate cuts.
While financial markets are increasingly betting on a potential June rate cut, economists expect inflation to remain sticky in the first half of the year, influenced by import tariffs and the weaker U.S. dollar.
