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May CPI to show elevated headline inflation, Nick Timiraos estimates

May CPI to show elevated headline inflation, Nick Timiraos estimates
May CPI headline seen hot from war

Nick Timiraos, chief economics correspondent at Wall Street Journal, highlights expectations for May’s Consumer Price Index (CPI) report. The headline figure is anticipated to be strong, largely because of the ongoing war, while the core CPI reading is expected to be milder.

In recent coverage, Timiraos noted that forecasters expect April’s core PCE inflation to rise to 3.3 percent, the highest level since November 2023, according to his estimates. He also reported that Fed Chairman Kevin Warsh is considering a focus on trimmed inflation measures, with the Dallas Fed’s indicator showing 2.3 percent in April, as outlined in his analysis. These previous posts add context to current expectations for inflation indicators.

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