HSBC expects that several core components of this inflation will experience a greater-than-expected cooling.

HSBC expects that several core components of inflation will cool more than anticipated this time, leading both overall CPI and core CPI to fall below market consensus expectations. James Knightley, Chief International Economist at ING, stated that the recent non-farm payroll figures fell significantly short of expectations, casting a huge doubt on the Federal Reserve's interest rate hikes. The Federal Reserve may keep interest rates unchanged, potentially extending this until 2027, but the ultimate direction will heavily depend on inflation trends and whether the U.S. and Iran can reach an agreement to reopen the Strait of Hormuz.