Analysts at ANZ are expecting the U.S. core inflation is to rise by a 0.2% m/m in June after four consecutive months of just 0.1%.

• “Underlying pricing pressures remain subdued. Domestic demand could use an extra bump to boost cyclical inflationary pressures.
• We look to FOMC Chair Powell and the minutes to the June meeting on guidance for the timing of easing. With the market pricing a 25bp cut in July as a done deal, Fed speakers need to push back if this is unwarranted.
• A further deterioration in global manufacturing and lacklustre domestic inflation suggest that a cut is warranted soon.”