BofA Securities predicts a 0.09% month on month decrease in US June CPI

BofA Securities analysts predict that the overall US CPI in June will decrease by 0.09% month on month, mainly due to the impact of falling gasoline prices. The core CPI is expected to increase by 0.28% month on month and 2.9% year-on-year. The demand related to the World Cup is pushing up service sector inflation, and the core PCE is expected to be slightly higher than CPI. AI interpretation: This prediction reveals the differentiation characteristics of inflation structure, where the decline in energy prices suppresses overall prices, but the stickiness of service sector inflation still constitutes the core support. The resilience of core inflation indicates resistance in the process of price decline, and the Federal Reserve maintains a cautious stance in policy shift decisions. This expectation reinforces the market's perception of the tortuous downward path of inflation and limits the excessive fermentation of short-term interest rate cut expectations.