Bessent Says U.S. Must Strengthen Supply Chains and Economic Security 
Oil Prices Drop as Strait of Hormuz Shipping Recovers 
Australia Inflation Cools in May, But Core CPI Keeps RBA Rate Hike Risks Alive 
Gold Drops Below $4,000 as Strong US Dollar and Fed Rate Hike Expectations Pressure Bullion 
Asian Stocks Slide as AI Rally Pauses, South Korean Chipmakers Lead Regional Decline 
Australian Household Spending Rebounds Strongly in May as Travel and Dining Drive Consumer Growth 
Oil Prices Slip as Iran Sanctions Relief and Hormuz Shipping Recovery Ease Supply Concerns 
Wall Street Slides as AI Stocks Tumble Following South Korea Tech Sell-Off 
Asian Stocks Slip as Oil Rebounds Amid Fed Rate Hike Fears 
After a report showed that inflation in China strengthened in January with the consumer price index reaching 2.5 percent y/y and producer price index reaching 6.9 percent y/y, which is the highest in five years, further reports confirmed that the return of inflation is likely to be a global phenomenon.
- German inflation report confirmed 1.9 percent price growth y/y in January, which is well within the target of the European Central Bank (ECB).
- Retail price index (RPI) in the UK jumped to 2.6 percent y/y in January. Producer price index for output rose by 3.5 percent y/y. Weak pound pushed the input cost to rise 20.5 percent y/y. House price index is up 7.2 percent y/y. Compared to the above the rise in consumer price index was small, it rose by 1.8 percent y/y.
- In Switzerland, the economy returned to positive yearly inflation for the first time since 2014. The consumer price rose by 0.3 percent y/y, producer and import prices rose by 0.8 percent y/y.
This rise in inflation is likely to continue for some time now. We expect the increasing price of commodities to support the increasing inflation, especially metals and agriculture.
