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Diane Swonk highlights that inflation data for the U.S. Federal Reserve's PCE index for May is expected to show a strong increase. She points out that components feeding into the index suggest a hot result, driven in part by lingering energy prices.
Swonk also notes that underlying services inflation, typically more insulated from supply shocks, is expected to remain high as well.
Swonk has previously reported that U.S. inflation measured by the PCE index remained high in April, with persistent price pressures across several categories (link). She also observed that manufacturing firms are moving ahead with anticipated price hikes, a trend that could affect future inflation readings (link). These observations provide context to the expected strong increase in May’s data.