Matt Henderson, Portfolio Manager, looks at the latest European inflation figures and while headline inflation continues to fall, core inflation remains sticky and unchanged at 2.9% driven by the divergence between goods and services. Moving over to the US, Federal Reserve Chairman Jay Powell made positive comments about disinflation re-establishing itself after a Q1 bump. However the Fed want further evidence from future reports before looking to reduce interest rates in the US as they wish to avoid starting another inflation cycle.