CITIC Securities: The risk of a second inflation in the United States is relatively small; high oil prices limit the room for inflation to decline.

Mars Finance News, according to Jintiao reports, China Securities Research reports state that U.S. inflation in April continued to run hot, and the spillover effects of Middle East conflicts are still ongoing, with compensatory increases in rent inflation pushing up the core reading. High inflation continues to erode the real purchasing power of American households, with low-income families facing stronger cost shocks, and real hourly wages returning to negative growth year-over-year for the first time in three years. China Securities believes that the risk of a second inflation in the U.S. is relatively low, but high oil prices will hinder the space for inflation to decline within the year, and under the baseline scenario, the Federal Reserve is still expected to cut interest rates by 25 basis points within the year.