- Retail inflation rises more than expected in June.
- The dollar advances strongly after the CPI figures.
The dollar rose sharply across the market following June US consumer inflation data that was above expectations. The consumer price index (CPI) registered a monthly advance of 0.9%, above the 0.5% of the market consensus and higher than 0.6% of the previous month. Thus, the annual rate reached 5.4%, from 5% in May, against the expected decline of 4.9%. The annual rise is the highest since 2008.
The underlying index also climbed 0.9% in June, beating the market consensus of 0.4%. Compared to twelve months ago, it increased 4.5%, well above the 4% expected and higher than the 3.8% of the previous month.
The dollar it skyrocketed in the market, on all fronts after the data and Wall Street futures fell back. The next key event in the US will be on Wednesday with Jerome Powell presenting to Congress for his semi-annual report.
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