Core Inflation

The Bank of Japan has maintained interest rates at 1% and issued a warning that core inflation may surpass its 2% target. The decision follows ongoing speculation about whether the central bank will accelerate rate hikes.

The U.S. economy grew at a 1.5% annual rate in Q2, below expectations, with June core inflation at 3.3%. The GDP shortfall was attributed to declines in federal government spending and inventories.

Mexico's inflation rate fell to 3.10% in early July, the lowest since December 2020, driven by declines in agricultural products like tomatoes. Core inflation rose slightly to 3.95% annually, while the Bank of Mexico noted continued moderation for eight consecutive fortnights.

Federal Reserve Chair Kevin Warsh emphasized the Fed has 'no tolerance' for high inflation but did not indicate future rate decisions. Recent inflation data showed a 0.4% monthly decline, with core inflation remaining above the Fed's 2% target. The Fed's divided committee faces challenges in aligning on rate policy amid economic uncertainties and rising oil prices from Middle East tensions.

Inflation in the US dropped to 3.5% in June as a brief US-Iran ceasefire temporarily reduced energy prices. The ceasefire has since ended, and recent strikes have pushed oil prices higher again, with gas prices up 70 cents per gallon compared to last year. Core inflation, excluding volatile energy and food prices, fell slightly to 2.6%.

Federal Reserve Chair Kevin Warsh faces his first congressional hearings on Tuesday and Wednesday, where he will address questions about task forces and his stance on interest rates amid inflation concerns linked to the Iran war. The Commerce Department is expected to report rising core inflation in June, which could prompt the Fed to tighten monetary policy.

Christopher Waller, a Fed governor, warned that a high core inflation reading could lead the FOMC to consider a rate hike at its late-July meeting, but cautioned against overreacting.

Mexico's annual inflation fell to 3.37% in June from 3.94% in May, remaining within target for the second consecutive month. The headline price index dropped 0.27% monthly, while the core inflation index, excluding volatile items, increased 0.24%.

June inflation data in the Eurozone shows weaker headline and core inflation, suggesting the energy shock may be temporary. This development is viewed as positive news for the European Central Bank (ECB).

Chicago Fed president Austan Goolsbee warned that core inflation remains too high and endorsed new Fed Chair Kevin Warsh's decision to remove forward guidance from Federal Reserve communications.

Mexico’s central bank (Banxico) maintained its benchmark interest rate at 6.50% amid declining inflation, with all board members voting to keep the rate unchanged. Annual headline inflation fell to 3.55% in June’s first half, down from 3.94% in May, while core inflation decreased to 4.12%. Banxico projects further inflation declines but noted risks like geopolitical conflicts and peso depreciation.

US inflation reached a three-year high in May, driven by rising energy prices linked to the Middle East war. Core inflation also increased, while consumer spending remained resilient due to tax refunds and stock price gains. Persistent gas prices and supply chain disruptions from the conflict may pressure the Federal Reserve to raise interest rates.

Mexico's annual inflation rate fell to 3.55% in the first half of June 2026, the lowest level of the year, surpassing forecasts of 3.77%. The decline was driven by falling fruit and vegetable prices, with tomatoes dropping nearly 24%.

Ukraine’s central bank maintained its 15% key policy rate on June 18, citing tight monetary conditions and easing geopolitical risks. It warned of rising core inflation and indicated potential rate hikes to stabilize expectations, while forecasting a $13 billion external financing increase in June.

Consumer price inflation reached 4.2% in May, a three-year high driven by energy price spikes linked to the Iran war. Core inflation, excluding food and fuel, was 2.9%, exceeding the Federal Reserve’s 2% target and reducing hopes for an interest rate cut.

Spiking energy prices drove inflation to a 3-year high of 4.2% annually in May, with energy costs accounting for over 60% of the increase. Core inflation, excluding food and energy, rose 2.9%.

Ukraine's annual inflation decreased to 8.2% in May from 8.6% in April, but fuel prices increased by 38.7% year-over-year, maintaining elevated core inflation, according to the State Statistics Service and Kyiv Post.

US inflation reached 4.2% with core inflation cooling, the Bank of Canada maintained interest rates for the fifth consecutive time, and both central banks took measures. The report was published by The Rio Times.

Inflation rose to 4.2% in May, marking the highest level in three years. Energy prices were the primary driver of the monthly increase, while core inflation remained below expectations.

Mexico’s annual headline inflation rate fell to 3.94% in May, entering the Bank of Mexico’s 2-4% target range for the first time since January. Core inflation decreased to 4.19%, while services inflation remained elevated at 4.57% annually for 54 consecutive months. Prices for fruits and vegetables surged 14.38% annually, with tomatoes rising 99.23%.

Higher core inflation in the Eurozone has prompted expectations of an ECB tightening in June. Headline price growth occurred as anticipated, but secondary effects are now emerging.

Core inflation in April reached 3.3% annually, aligning with expectations, while the broader PCE price index showed 3.8% inflation for all items. The Federal Reserve's preferred inflation metric, the PCE index, confirmed these figures.

A key inflation gauge rose to 3.8% in April 2026, the highest in three years, driven by spiking gas and food prices. Core inflation hit 3.3%, with incomes falling slightly after adjusting for inflation, potentially complicating the Federal Reserve's interest rate decisions.

Singapore reported lower-than-expected inflation of 1.8% for April, with core inflation at 1.4% against an estimated 1.7%. The country also revised its economic growth forecast higher.

The Reserve Bank of New Zealand (RBNZ) has indicated it will take decisive action if core inflation rises. The statement highlights the central bank's commitment to managing inflationary pressures.