Analysis: A significant increase in core CPI may prompt the Federal Reserve to consider pausing interest rate cuts

ChainCatcher news, according to Jinshi reports, based on a Bloomberg survey of economists, the month-on-month growth rate of CPI and the core CPI excluding food and energy may record 0.1% and 0.2% respectively. Core CPI is seen as a better signal for future inflation. The prices of groceries and gasoline can sometimes fluctuate significantly, exaggerating the overall price level.

If there is a significant increase in core CPI, financial markets may experience turbulence and reignite considerations about the Federal Reserve's "pause" on interest rate cuts—if further progress on inflation issues stalls, the Federal Reserve may abandon rate cuts in November or December.