US CPI Preview: Core Inflation Expected to Remain Mild, Potentially Easing Market Rate-Hike Concerns

Odaily Planet Daily News Report: Economists Durie and Wong predict that the overall US CPI data for May will show strong heat, but core inflation, which is more critical for the Fed's interest rate outlook, should remain mild, with its month-on-month increase aligned with the 2% inflation target. Although supply shocks have pushed up the prices of airfares, appliances, and electronic products, softening inflation in the non-essential services sector suggests that consumers are cutting back on discretionary spending.

A mild core inflation reading would ease market concerns about a Fed rate hike following the better-than-expected May non-farm payrolls data. The economists stated that they still expect the Fed to cut interest rates by 25 basis points in the fourth quarter of this year. (Jin Shi)