Current Inflation Trends

UBS economists forecast core CPI inflation will stabilize at 3.9% by the end of 2025, marking a notable increase from May’s reading. This projection indicates the potential for inflation to reach levels not seen since January 2024.

Market Implications

The sustained low inflation rate suggests that consumer prices have not reacted significantly to current tariff pressures, remaining steady amid challenging economic conditions. Investors should monitor upcoming Federal Reserve decisions regarding interest rates as inflation metrics evolve.