According to BlockBeats, on June 27, analysts said they expect core PCE inflation in May to record the slowest increase this year, which is good news for policymakers. Falling gasoline prices and generally declining commodity inflation will limit economic growth. But this may only bring temporary respite to the Fed, as spending categories with sticky inflation continue to put upward pressure on inflation indicators, and unfavorable base effects are expected in the second half of this year.
Analysts said their estimate is that the core PCE monthly rate will slow to 0.10% in May, the lowest level so far this year. The core PCE annual rate should fall to 2.6%, the lowest level since March 2021. In addition, the headline PCE monthly rate will barely approach 0.1%, and the year-on-year growth rate will reach 2.6%.
