Overview

• China’s consumer price index dropped 0.1% in May, marking four consecutive months of price declines, while factory-gate prices fell 3.3% year-on-year.
• The People’s Bank of China cut its benchmark interest rates by 10 basis points and lowered the reserve requirement ratio by 50 basis points to support growth.
• U.S. core consumer prices rose 0.3% in May—the strongest monthly gain in four months—as companies passed higher import duties onto shoppers.
• On May 12 in Geneva, the U.S. and China agreed to roll back most tariffs in a preliminary deal and have scheduled follow-up negotiations in London.
• Federal Reserve officials will analyze May’s CPI and producer price data to assess the trade-policy impact ahead of their June 17-18 policy meeting.