In the United States, the consumer price index (CPI) for May will be released on the 13th. The central bank’s CPI is expected to signal that underlying price pressures remain persistent, even as the Fed uses different inflation measures to target the 2% target.
The core index, which excludes volatile food and energy, is expected to rise 0.4% from the previous month. If it does, it would be a sixth straight month of growth of 0.4% or more, which would help explain why policy rates could stay higher for longer.
On a year-on-year basis, the core CPI is expected to rise by 5.2%, the slightest increase since November 2021. Headline CPI growth is expected to slow to 4.1%. Although still uncomfortably high, easing inflation is giving the Fed some leeway to pause rate hikes.
The U.S. Producer Price Index (PPI) due Thursday is expected to show further disinflation at the producer level. The core index is expected to grow at a modest pace for the first time in about two years on a year-on-year basis. This is because the cost of goods remains stable.
May 15 US retail sales are expected to fall 0.1% from the previous month. This is likely to be consistent with softening consumer demand.
news-rsf-original-reference paywall">Original title:Fed Is Set to Pause and Assess Effect of Rate Hikes: Eco Week(excerpt)
2023-06-11 16:43:00
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