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Nick Timiraos, chief economics correspondent at Wall Street Journal, reports that the core Consumer Price Index (CPI) increased by 0.21% in May. This brought the 12-month core CPI measure up to 2.9%.
According to Timiraos, this marks the first time since December 2022 that the 12-month core CPI reading was higher than the year-earlier period.
In April, forecasters expected core PCE inflation to rise to 3.3 percent, the highest level since November 2023, according to estimates reported by Timiraos. Federal Reserve Chairman Kevin Warsh has recently advocated using trimmed inflation measures, with the Dallas Fed's indicator showing 2.3 percent in April, as noted in a separate report. These datapoints continue to shape the Federal Reserve's approach to monitoring price pressure.