According to Xinhua News Agency, data from the US Department of Labor shows that the US Consumer Price Index rose by 0.042 year-on-year in May, reaching its highest level since May 2023. The rise in energy costs has led to higher living costs for the American people and put pressure on the Federal Reserve's monetary policy. US President Trump has expressed his love for inflation, believing that prices will fall after the end of the Iran conflict. This statement has sparked criticism and concerns among Republicans that it may affect the midterm elections in Congress.
AI interpretation: Inflation data rebounded beyond expectations and set a new stage high, directly breaking the market's optimistic expectation of sustained price decline. The structural increase in energy costs has become the core driving force behind rising prices, which forces the Federal Reserve to maintain a tight monetary policy stance to curb uncontrolled inflation. This data completely ends the narrative of short-term interest rate cuts, and the market will reprice the duration of the high interest rate environment. This inflationary pressure not only exacerbates the burden of people's living costs, but also triggers a fierce political game over the direction of economic policies.
