US Inflation Cools, Raising Prospects for Rate Cuts

Supply chain recovery and labor market shifts play crucial roles in easing price pressures

US inflation rates have cooled more than expected, with consumer prices rising just 3.3% annually, down from a 2022 peak of over 9%.
The Federal Reserve has signaled only one rate cut for the remainder of the year, deviating from earlier projections of three cuts.
Supply chain improvements and increased labor force participation have significantly contributed to the reduction in inflation.
The Bank of Japan's decision to delay bond purchase cuts leaves the yen vulnerable, while European political shifts have weakened the euro.
Despite economic improvements, consumer sentiment in the US remains low, reflecting ongoing public concerns about inflation and economic stability.