US: Economic data shock - ANZ

There was a slew of US data overnight, the lowlight of which was the 0.1% fall in headline CPI and the meagre 0.1% rise in core CPI, which saw the latter’s annual reading slump from 1.9% to 1.7%, explains the analysis team at ANZ.

Key Quotes

“It’s the fourth fall in annual core CPI in a row and is disappointing, Yellen was at pains to point out in her testimony that the Fed felt this was transitory and is not reading too much into the recent weakness. US retail sales were also below consensus, although the details were stronger than the headline series and continue to suggest some acceleration of consumption in Q2. Finally, as noted, the Fed hiked by 25bps and detailed its balance sheet plan.”