Analysis: A large increase in core CPI may trigger the Fed to consider suspending interest rate cuts

According to a report by Jinshi, based on a survey of economists by Bloomberg, CPI month-on-month growth rate and core CPI month-on-month growth rate excluding food and energy may record 0.1% and 0.2% respectively. Core CPI is considered a better signal of future inflation. Prices of groceries and gasoline sometimes experience significant fluctuations and can exaggerate overall price levels. If core CPI shows significant growth, the financial markets may experience turbulence and rekindle considerations about the Fed's "pause" in interest rate cuts - if further progress on inflation stalls, the Fed may abandon its interest rate cut plans in November or December.