In the US, there are increasing signs that inflationary pressure is easing. In June, consumer prices rose by only 0.2% compared with the previous month. The core rate (which excludes energy and food), which is important as a measure of the underlying trend, was also only 0.2%, the smallest increase since February 2021. 

While the Federal Reserve is still likely to raise interest rates again at the end of the month, the data support our view that this should be the last hike.