CPI Data Expectations: Analyzing May US inflation – by FXstreetNews EconomicIndicator SEO UnitedStates Inflation EURUSD
Annual Consumer Price Index in the US is seen rising 4.2% in May, slowing from April’s 4.9% increase.US CPI inflation data is set to influence the Fed’s rate outlook and stir US Dollar markets. inflation data for May will be published by the US Bureau of Labor Statistics on June 13 at 12:30 GMT.
The US CPI inflation data could influence the Fed’s decision, throwing fresh light on whether the world’s most powerful central bank will meet the market expectations and bring a halt to its tightening cycle. Therefore, this top-tier US economic data release is likely to have a significant bearing on USD valuations.The US Consumer Price Index data, on a yearly basis, is expected by market consensus to rise 4.2% in May, a deceleration when compared with the 4.9% increase recorded in April.
Based on recent Fed communication and sluggish economic performance, the central bank is widely expected to skip a rate hike at this meeting and potentially resort to tightening more later. The recently released US ISM Services PMI and the weekly Initial Jobless Claims data disappointed and raised economic concerns. Expectations for further cooling of US inflationary pressures further cemented a Fed pause this week, with markets pricing roughly 80% probability for the same.
We expect the May CPI, released just ahead of the FOMC meeting, to slow down to 0.2% MoM driven by negative contribution from energy prices. We also forecast Core CPI to continue cooling to 0.3% MoM .The CPI inflation data is slated for release at 12:30 GMT, on May 10. A below-forecast reading, especially in the monthly core inflation, could push back against the market expectations that the Fed could return to tightening later this year after skipping at the June meeting.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
NZD/USD Price Analysis: Aims to recapture 0.6150 amid lackluster USD Index ahead of US CPIThe NZD/USD pair is looking to recapture the previous day’s high of 0.6150 in the early European session. The Kiwi asset is getting strength as the US
Read more »
USD Index should trade in a narrow 103.30-104.00 range into tomorrow's CPI number – INGEconomists at ING analyze US Dollar outlook ahead of the all-important US Consumer Price Index (CPI) data due out on Tuesday, Holding pattern ahead of
Read more »
USD/CAD Price Analysis: Prepares for a fresh rally above 1.3360 ahead of US CPI and Fed policyThe USD/CAD pair is gathering strength for a fresh rally around 1.3350 ahead of the release of the United States Consumer Price Index (CPI) and the in
Read more »
US CPI Banks Preview: Headline inflation is moderating, but underlying persistsThe US Bureau of Labor Statistics (BLS) will release the most important inflation measure, the US Consumer Price Index (CPI) figures, on Tuesday, June
Read more »
AUD/USD Price Analysis: Bears in control and price is on the backside of bullish trendAUD/USD was pressured on Monday from bullish cycle highs near 0.6773 and the pair now consolidates ahead of key events on the US calendar this week, s
Read more »
Gold Price Forecast: XAU/USD approaches $1,970 amid a sell-off in USD Index, US CPI and Fed policy eyedGold Price Forecast: XAU/USD approaches $1,970 amid a sell-off in USD Index, US CPI and Fed policy eyed Gold XAUUSD Fed Inflation SupportResistance
Read more »