US: CPI to firm to 2.8% y/y in May - TDS

Analysts at TDS are looking for the US CPI to firm to 2.8% y/y in May on the surge in energy prices, with the headline index up 0.3% m/m (market: 2.7% y/y, 0.2% m/m).

Key Quotes

“Core inflation should see a more modest pickup to 2.2% y/y, in line with consensus, as a moderation in OER offsets strength in core goods prices. This would be consistent with a 0.2% m/m increase in core CPI after the soft 0.1% print in April.”

“NFIB Small Business Optimism for May is the only other release and the market looks for a modest increase to 105.0.”