Economists Durie and Wong said the United States’ May headline CPI data is expected to come in strong, while core inflation—seen as more important for the Federal Reserve’s rate outlook—is expected to remain moderate.
According to Jin10, they said the month-on-month rise in core inflation should be consistent with the Fed’s 2% inflation target. They attributed some price increases to supply shocks that lifted costs for airfares, home appliances, and electronic products.
They added that softer inflation in non-essential services suggested consumers were cutting back on discretionary spending. The economists said a mild core inflation reading would ease market concerns about further Fed rate hikes following stronger-than-expected May nonfarm payrolls data.
They also said they still expected the Fed to cut interest rates by 25 basis points in the fourth quarter of this year.
Economists Expect Hot May U.S. CPI but Mild Core Inflation
2026-06-10 12:16:12
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