The latest economic data from the United States has revealed a significant drop in inflation, bringing relief to producers of metals and other raw materials. In June, the cost of goods and services experienced a modest 0.2% increase as inflation continued to ease. Interestingly, core prices, which exclude food and energy, also saw a decrease from the 0.3% rise recorded in May. These findings were reported by the personal consumption expenditures index. Additionally, the employment-cost index for the second quarter showed a slowdown in wage inflation, dropping from 1.2% to 1%.
Economists Krishna Guha and Marco Casiraghi from Evercore ISI expressed optimism regarding these numbers, as they believe it will be good news for the Federal Reserve’s efforts to bring inflation back to its targeted 2% level. Moreover, this data has sparked hopes for a smooth landing for the U.S. economy, which is considered an ideal scenario for stocks.
In a separate development, gold futures witnessed an increase in value.