The latest inflation print showed more signs of prices easing in June with headline inflation at 3%, whilst core inflation was at 4.8% from a year ago. Although inflation remains above the Federal Reserve’s 2% target, it delivers hopes that the rate hiking cycle can soon end. It also brings into question whether the Fed will need to hike again after its planned 0.25% hike in July. However, wage growth and labour market resilience has been a huge driver for sticky inflation. Until these drivers become more subdued, a 2% target for inflation will prove to be a challenge and therefore will be a key focus for the Fed to guide their decision making.