Having witnessed a 40-year high US inflation, Goldman Sachs (GS) came out with its research suggesting no relief for traders.
The US bank said that 42% of the CPI basket now has a 6-month annualized inflation of above 6%.
It’s worth noting that US Consumer Price Index (CPI) for June jumped to the highest level in 40 years to 9.1% YoY versus 8.8% expected and 8.6% prior. The Core CPI, which excludes volatile food and energy prices, eased to 5.9% from 6% prior but crossed analysts' forecast of 5.8%.
Following the US data, White House (WH) Economic Adviser Brian Deese told CNBC that the CPI data shows the urgency for Congress to pass legislation to spur semiconductor manufacturing in the US, as reported by Reuters. On the other hand, US President Joe Biden mentioned that CPI data is ‘out of data’ as gas prices have fallen.
Also read: US Dollar Index stays firmer above 108.00 as US inflation underpins hawkish Fedspeak