White House Press Secretary Karine Jean-Pierre told reporters that she expects new Consumer Price Index (CPI) data to be highly elevated.

Her comments escalate inflation woes ahead of Wednesday’s US CPI release for June, expected 8.8% YoY versus 8.6% prior.

It’s worth noting that the US inflation expectations jumped to the record high of 6.8% in June, versus 6.6% prior, per the NY Fed’s survey of one-year-ahead consumer inflation expectations.

On the same line, Atlanta Fed President Raphael Bostic said that recent inflation data has not been as encouraging as I would have liked, per Reuters.

FX implications

The inflation fears weigh on the market sentiment and fuel the US dollar due to its safe-haven appeal, also drowning the commodities and Antipodeans.

Also read: NZD/USD bears attack 0.6100 at two-year low amid inflation/recession fears, RBNZ eyed