Inflation data from the US presented a muddled picture. Headline CPI declined once more and is now around half the peak achieved last summer. However, core inflation (excluding more volatile food and fuel costs) defied expectations to increase slightly. The lack of a clear signal means the US Federal Reserve continues to face a conundrum and the bank appears split on the subject. Some decision makers recommended the bank pause its rate hikes at the last meeting, while others have advocated for the Fed to maintain its aggressive approach to ensure inflation is brought under control.
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