US May CPI 4.0% y/y versus 4.1% expected

• Prior
• CPI MoM +0.1% vs +0.2% expected
• Prior MoM reading was +0.4%
• CPI YoY 4.0% vs 4.1% expected.
• Core CPI MoM +0.4% versus +0.4% expected
• Core YoY 5.3% versus 5.3% expected
• Shelter +0.6% versus +0.4% last month
• Real weekly earnings Earnings A company’s earnings represent its profits or net benefits as a result of its operation.Earnings are the net benefits of a corporation's operation. Earnings can be calculated as EBIT, i.e. earnings before interest and taxes, and EBITDA, i.e. earnings before interest, taxes, depreciation, and amortization.Earnings are valuable tools for investors of company shares as they can often highlight a company’s financial standing and performance. Better performances can result in strengthened share price A company’s earnings represent its profits or net benefits as a result of its operation.Earnings are the net benefits of a corporation's operation. Earnings can be calculated as EBIT, i.e. earnings before interest and taxes, and EBITDA, i.e. earnings before interest, taxes, depreciation, and amortization.Earnings are valuable tools for investors of company shares as they can often highlight a company’s financial standing and performance. Better performances can result in strengthened share price Read this Term -0.1% vs +0.1% prior (revised to 0.0%)
• Food +0.2% vs 0.0% prior
• Energy -3.6% m/m vs +0.6% prior
• New vehicles -0.1% vs -0.2% prior
• Used cars and trucks +4.4% vs +4.4% prior
• Core services ex-shelter +0.1% m/m
• Core services ex-shelter 3-month annualized +2.9%

This assures the Fed The Fed "The Fed" is a short-hand that refers to the Federal Reserve or Federal Reserve System, the central banking system of the United States. Traders often discuss the actions of the Fed, primarily interest rate decisions, as they significantly impact all financial markets.The Fed shouldn't be confused or substituted with the term "the Feds" and doing so tells everyone you're a total noob. The term "the Feds" refers to US Federal law enforcement, including such agencies as the FBI (Federal Bureau of "The Fed" is a short-hand that refers to the Federal Reserve or Federal Reserve System, the central banking system of the United States. Traders often discuss the actions of the Fed, primarily interest rate decisions, as they significantly impact all financial markets.The Fed shouldn't be confused or substituted with the term "the Feds" and doing so tells everyone you're a total noob. The term "the Feds" refers to US Federal law enforcement, including such agencies as the FBI (Federal Bureau of Read this Term won't hike tomorrow. Odds down to 5%.

The core numbers are stubbornly high but the cherry on top is the fall in earnings and the revision lower in last month's earnings data. The big driver in core inflation was used car prices; stripping that out, core CPI was flat.

The shelter index increased 8.0% over the last year, accounting for over 60% of the total increase in all items less food and energy.

Note the June 2022 number there. That will be lapped in next month's report, knocking 1.2 pp off the year-over-year reading. Given the struggles of oil prices, there's a good chance we see CPI below 3% in June, which might turn a skip into something more.

Summary:

The Consumer Price Index for All Urban Consumers (CPI-U) saw a slight 0.1% rise in May, as per the U.S. Bureau of Labor Statistics. Over the past 12 months, this index increased by 4.0% before seasonal adjustments. The largest contributor to the monthly increase was the shelter index, followed by the used cars and trucks index. The food index rose by 0.2% in May, with the index for food at home and away from home rising by 0.1% and 0.5% respectively. Meanwhile, the energy index dropped by 3.6% in May, with all its major components seeing a decline. The index for all items excluding food and energy increased by 0.4% in May, with the shelter index being a significant contributor. Several indexes, such as household furnishings and operations and airline fares, decreased over the month. In terms of annual performance, the all items index saw the smallest 12-month increase since March 2021, whereas the index for all items less food and energy rose by 5.3%.