Economists expect US May CPI to rise to a three-year high

Odaily Odaily Senior Vice President and Chief Economist Bill Adams of Comerica Bank expects the year-over-year increase in the US May CPI to break through 4%, marking a new three-year high, primarily driven by rising gasoline prices last month. The year-over-year increase in core CPI is expected to remain relatively moderate, close to 3%. The May price increase outpaced the growth in average hourly wages, indicating further erosion of consumers' actual purchasing power.

Meanwhile, the PPI is also expected to record another significant increase, with a higher rate than the CPI, reflecting the impact of the higher weight of petroleum products, metals, and transportation costs in the producer price basket. Additionally, the preliminary June consumer sentiment index released by the University of Michigan is expected to rebound from May's historic low, mainly boosted by the decline in gasoline prices over the past two weeks and the rise in the stock market. (Jin Shi)