Bank of America says U.S. CPI may fall in June due to falling gasoline prices

On July 11, analysts at Bank of America Securities said in a report that the overall CPI in the United States may fall by 0.09% month-on-month in June, partly due to the sharp drop in gasoline prices. However, core inflation should remain high at 0.28% month-on-month or 2.9% year-on-year, they added, in part because World Cup-related demand is driving up service sector inflation. "Based on this forecast, we expect the core PCE to once again be slightly stronger than the CPI."