Take two: US inflation rises; China’s GDP growth rate eases
What do you need to know?
US annual inflation rose in June, suggesting that President Donald Trump’s tariff policy is pushing up costs for Americans. The Consumer Price Index increased to 2.7% from 2.4% in May, driven by increased shelter, energy and food prices. Core inflation, excluding food and energy, rose 2.9% compared to 2.8% in May. However, the increased trade tariffs helped raise an additional $47bn of revenue from custom duties in the second quarter (Q2), according to reports. Elsewhere, Eurozone annual inflation was confirmed at 2.0% in June from 1.9% in May, with a rise in services costs the biggest contributor. Core inflation was unchanged at 2.3%.
Around the world
China’s economic growth rate eased to 5.2% year on year in Q2, slightly ahead of market expectations of 5.1%, but down from 5.4% in the first three months of the year. While growth was helped by a jump in exports, as firms tried to get ahead of new tariffs, retail sales eased back. Earlier this year, the US increased its tariffs on Chinese imports which drove Beijing to introduce stimulus measures to mitigate the impact on the economy. For 2025 as a whole, the world’s second largest economy has set a GDP growth target of “around 5%”.
Figure in focus: 9,000
The FTSE 100 share index surpassed the 9,000-point threshold for the first time last week, hitting a new intra-day record high on Tuesday. The blue-chip index has benefited as investors have pivoted away from America, while the UK’s recent trade agreement with the US has helped bolster optimism. Elsewhere, the US S&P 500 and Nasdaq indices also reached record highs last week, driven by better-than-expected corporate earnings and robust economic data including retail sales and unemployment claims.
Words of wisdom
Digital wallet: An application on a mobile phone or other electronic device that stores the user’s payment information, so they can make purchases without using physical cards or cash. Digital wallets accounted for more than a third of global consumer-to-business spending in 2024, at some $15.7trn, according to the 2025 Worldpay Global Payments Report. That represents almost 10 times the value in 2014 and is expected to reach more than $28trn by 2030. Cash fell to 15% of payment value in 2024 from 44% a decade earlier, Worldpay said.
What's coming up?
On Tuesday, the Reserve Bank of Australia posts the minutes from its recent policy meeting, where officials chose to leave rates unchanged at 3.85%. The European Central Bank meets on Thursday to decide on monetary policy - policymakers lowered the benchmark rate by 25 basis points (bp) to 2% at their June meeting. Also on Thursday, several flash composite Purchasing Managers’ Indices are issued, including readings for the Eurozone, US, UK and Japan. Germany's closely watched Ifo Business Climate Index is published on Friday.
Disclaimer
This website is published by AXA Investment Managers Asia Limited (“AXA IM HK”), an entity licensed by the Securities and Futures Commission of Hong Kong (“SFC”), for general circulation and informational purposes only. It does not constitute investment research or financial analysis relating to transactions in financial instruments, nor does it constitute on the part of AXA Investment Managers or its affiliated companies an offer to buy, sell or enter into any transactions in respect of any investments, products or services, and should not be considered as solicitation or investment, legal, tax or any other advice, a recommendation for an investment strategy or a personalised recommendation to buy or sell securities under any applicable law or regulation. It has been prepared without taking into account the specific personal circumstances, investment objectives, financial situation, investment knowledge or particular needs of any particular person and may be subject to change at any time without notice. Offering may be made only on the basis of the information disclosed in the relevant offering documents. Please consult independent financial or other professional advisers if you are unsure about any information contained herein.
Due to its simplification, this publication is partial and opinions, estimates and forecasts herein are subjective and subject to change without notice. There is no guarantee such opinions, estimates and forecasts made will come to pass. Actual results of operations and achievements may differ materially. Data, figures, declarations, analysis, predictions and other information in this publication is provided based on our state of knowledge at the time of creation of this publication. Information herein may be obtained from sources believed to be reliable. AXA IM HK has reasonable belief that such information is accurate, complete and up-to-date. To the maximum extent permitted by law, AXA IM HK, its affiliates, directors, officers or employees take no responsibility for the data provided by third party, including the accuracy of such data. This material does not contain sufficient information to support an investment decision. References to companies (if any) are for illustrative purposes only and should not be viewed as investment recommendations or solicitations.
All investment involves risk, including the loss of capital. The value of investments and the income from them can fluctuate and that past performance is no guarantee of future returns, investors may not get back the amount originally invested. Investors should not make any investment decision based on this material alone.
Some of the services listed on this Website may not be available for offer to retail investors.
This Website has not been reviewed by the SFC. © 2025 AXA Investment Managers. All rights reserved.