Before the much-anticipated US CPI data was released, US officials refuted rumors that the CPI report "leaked" in advance was forged.
At 8:30 am Eastern Time on Wednesday (20:30 pm on Wednesday, Beijing time), The U.S. Bureau of Labor Statistics will officially release the U.S. CPI data for June. But on Tuesday, a report was "accidentally leaked" the day before its scheduled release, forcing the U.S. Bureau of Labor Statistics to come forward and publicly denounce the rumor.
The agency wrote on Twitter :
We have noticed a fake CPI data report being circulated on Twitter, which is fake. Please stay tuned for the CPI data released at 8:30 a.m. ET tomorrow.
This fake report stated that The year-on-year increase in CPI in the United States in June reached 10.2%, which was the largest year-on-year increase since 1981 and was much higher than the 8.8% forecast by economists. The food price index even increased by 11.7% year-on-year.
Some netizens took out the May CPI data report released on June 10 and pointed out that the tables in this fake report were exactly the same as those at the time. This was one of the evidences that the report was fake.
This false report began to circulate on the Internet at 11:30 a.m. Eastern Time, causing and U.S. stocks to collectively turn from rising to falling in afternoon trading, and to dive one after another.
An hour before the close, the sell-off in U.S. stocks intensified, with the Dow giving up all its gains and falling more than 200 points, The S&P 500 index , Nasdaq 100 index and Russell small-cap stocks all hit daily lows, The Nasdaq once fell 1.5%.
The S&P 500 index fluctuated between slight increases and decreases throughout the day, falling into negative territory at around 2 p.m. Eastern Time. It recovered some of its losses at the close, and finally closed down 0.9%. All 11 S&P sectors collapsed. ; The Nasdaq also closed down 0.9%.
When the U.S. Department of Labor officially releases June inflation data, it is at an extremely sensitive moment for financial markets and the broader U.S. economy, as the Federal Reserve increases its efforts to combat inflation.
Last month, the Federal Reserve raised interest rates by 275 basis points for the first time since 1994, after May's CPI report showed a sharp acceleration in inflation.
Economists expect a similarly large rate hike when the Federal Reserve meets at the end of this month. The White House this week tried to control public expectations for June data, admitting that the numbers are likely to be "high."
Wall Street Journal reporter Nick Timiraos, known as the "New Federal Reserve News Agency," wrote that housing inflation in inflation data is important because it accounts for about 40% of core CPI and one-sixth of the PCE inflation index. Weights.
Because of the way the U.S. Department of Labor calculates rental prices, some analysts predict that rent inflation may continue to rise this summer and then peak at around 6.5% in the coming months. If so, it would be the highest point in 36 years.
Nick Timiraos said that the housing sector can provide more fuel for inflation, so prices in other sectors will need to fall significantly to see overall U.S. inflation decline.
In addition, energy prices have fallen sharply recently, but this is not expected to be reflected in the data released on Wednesday.
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