HiFX: Foreign Exchange Specialists

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July 16, 2008

The U.S. annualised core consumer price index jumped to 2.4% in June from May’s 2.3%.  As inflation continues to remain above the Feds 2.0% target this data highlights that inflationary pressures remain elevated and is likely to remain at the forefront of Fed member’s focus.  Recent comments from various Fed. members have suggested that the FOMC acknowledges that inflation is likely to edge higher in the coming months, as such they stands ready to take appropriate action to bring inflation back inline with their target.  The USD remained largely unchanged as the inflation data came as little surprise to the market.