- United States CPI inflation increased to 5.00% YoY in May, from 4.20% YoY in April.
- US initial jobless claim dropped to 376,000 in the week ended June 6, from 385,000 in the previous week.
- Bank Indonesia’s retail sales index increased by 15.60% YoY in April, a reversal from 14.60% YoY contraction in March.
- BI predicts retail sales index in May to increase by 12.90% YoY.
We expect US 5.00% CPI inflation in May to stir up negative sentiment among global investors, creating a temporary obstacle for the current stocks market rebound. The Fed, however, will not change its policy position, as the sudden surge in CPI inflation is caused by low base effect. Surging coronavirus cases post-Lebaran – reported higher yesterday at 8,892 cases – may force the government to implement stricter mobility restrictions soon.