May CPI data, falling on same day as Fed decision, seen cooling a bit
==========
Consumer inflation data for May is expected to cool from the previous month, but likely not enough for the Federal Reserve to start cutting interest rates. The Consumer Price Index (CPI) report will be released on the same day as the Federal Reserve's interest-rate decision, which has only occurred seven times since 2014. CPI is seen rising 0.1% M/M in May, easing from April's 0.3% increase. Y/Y, the inflation gauge is forecast to climb 3.4%. Core CPI is expected to increase 0.3% M/M and 3.5% Y/Y. A downside surprise to core CPI could reopen hope for a July rate cut, while an upside surprise could lead to speculation of a rate hike. The Fed will have to continue to hold borrowing costs at the current restrictive level until it gains confidence in the progress on disinflation. Another key economic report slated for release is May's Producer Price Index (PPI), which is expected to slow to +0.1% M/M. PPI generally has a strong relationship with CPI, but there has been a recent divergence. PPI rose while CPI slipped, implying a narrowing in corporate margins.
#Cpi #FederalReserve #InterestRates #Inflation #ProducerPriceIndex
https://seekingalpha.com/news/4114534-may-cpi-data-falling-on-same-day-as-fed-decision-seen-cooling-a-bit
Seeking Alpha /
npub1qpf…damf
2024-06-11 19:19:56
Author Public Key
npub1qpfrthtcf6g8grmwfv45qf28aa4xqk73pgnmwjdfuze8zl2l2cnsewdamfPublished at
2024-06-11 19:19:56Event JSON
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"content": "May CPI data, falling on same day as Fed decision, seen cooling a bit\n==========\n\nConsumer inflation data for May is expected to cool from the previous month, but likely not enough for the Federal Reserve to start cutting interest rates. The Consumer Price Index (CPI) report will be released on the same day as the Federal Reserve's interest-rate decision, which has only occurred seven times since 2014. CPI is seen rising 0.1% M/M in May, easing from April's 0.3% increase. Y/Y, the inflation gauge is forecast to climb 3.4%. Core CPI is expected to increase 0.3% M/M and 3.5% Y/Y. A downside surprise to core CPI could reopen hope for a July rate cut, while an upside surprise could lead to speculation of a rate hike. The Fed will have to continue to hold borrowing costs at the current restrictive level until it gains confidence in the progress on disinflation. Another key economic report slated for release is May's Producer Price Index (PPI), which is expected to slow to +0.1% M/M. PPI generally has a strong relationship with CPI, but there has been a recent divergence. PPI rose while CPI slipped, implying a narrowing in corporate margins.\n\n#Cpi #FederalReserve #InterestRates #Inflation #ProducerPriceIndex\n\nhttps://seekingalpha.com/news/4114534-may-cpi-data-falling-on-same-day-as-fed-decision-seen-cooling-a-bit",
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