09:25 AM EDT, 07/11/2024 (MT Newswires) -- "This is exactly what the FOMC is looking for," said TD Economics on today's U.S. CPI data for June, noting that not only did the supercore measure slip into deflationary territory, but the long-awaited adjustment lower on shelter prices also appears to be underway, while core goods prices also continued to edge lower. "Encouragingly", it noted, the three-month annualized rate of change on core inflation fell sharply to 2.1% -- the softest reading since March 2021.

Speaking at his semiannual Congressional testimony earlier this week, Chair Powell described the May inflation report as 'very good', which would make this morning's report excellent, according to TD. "Should the next two inflation readings remain on the softer side, a September rate cut looks to be very much in play," TD added.