According to BlockBeats, analysts have predicted that the core PCE inflation for May will record the slowest increase this year, which is good news for policy makers.
The continuous decline in gasoline prices and the general decrease in commodity inflation will limit economic growth. However, this may only provide a temporary respite for the Federal Reserve, as expenditure categories with sticky inflation continue to put upward pressure on inflation indicators. It is expected that an unfavorable base effect will occur in the second half of this year.
Analysts estimate that the core PCE monthly rate will slow down to 0.10% in May, the lowest level this year. The annual core PCE should drop to 2.6%, the lowest level since March 2021. In addition, the overall PCE monthly rate will barely approach 0.1%, and the year-on-year growth rate will reach 2.6%.