US inflation expectations jump to one-month high ahead of CPI data

US inflation expectations, as per the 10-year breakeven inflation rate per the St. Louis Federal Reserve (FRED) data, rose for three consecutive days in the last to challenge the highest levels since early May by the end of Friday’s North American session.

The inflation signal becomes more important considering this week’s US Consumer Price Index (CPI) for May, as well as an absence of the Fed policymakers’ speeches, due to the pre-Fed blackout norm.

That said, the US inflation gauge rose from 2.66% to 2.74% amid hawkish Fedspeak and mostly upbeat US data published on Friday.

It’s worth noting that strong US Nonfarm Payrolls (NFP) join the hawkish comments from Cleveland Fed President Loretta Mester to recently propel the odds of a third 50 bps rate hike in September, to 75% from 35% appeared last week.

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