CITIC Securities: The risk of a second wave of inflation in the US is low, while high oil prices limit the scope for inflation to decline.

ChainCatcher news, according to Golden Ten Data, CITIC Securities research report states that US inflation remained strong in April, with the spillover effects of the Middle East conflict continuing and compensatory increases in rental inflation pushing up core readings. High inflation continues to erode the real purchasing power of American households, with low-income families facing even greater cost pressures, and real hourly wages returning to negative growth year-on-year after three years. CITIC Securities believes the risk of secondary inflation in the US is relatively small, but high oil prices will limit the room for inflation rate decline within the year. In the baseline scenario, it still expects the Federal Reserve to cut rates by 25 basis points within the year.