Free Trial

MNI BRIEF: US May CPI Offers Fed Some Relief; Supercore Dips

Headline and core CPI came in well below expectations last month.

U.S. CPI came in well below expectations in May, with headline nearly flat over the month and core up just 0.163%, compared to expectations for a 0.1% and 0.3% rise, respectively. Over the past 12 months, the increase in headline CPI slowed to 3.3% and core 3.4%, the Bureau of Labor Statistics said Wednesday. The 10-year Treasury yield fell 13 bps and the U.S. dollar slid to new weekly lows.

Shelter rose 0.4% for the fourth straight month, more than offsetting a 3.6% decline in gasoline. Core services outside of housing or "supercore" fell by 0.042% compared to its three-month average of 0.342%, according to an MNI calculation. Analysts had expected increases ranging from 0.3% to 0.5%.

Keep reading...Show less
191 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

U.S. CPI came in well below expectations in May, with headline nearly flat over the month and core up just 0.163%, compared to expectations for a 0.1% and 0.3% rise, respectively. Over the past 12 months, the increase in headline CPI slowed to 3.3% and core 3.4%, the Bureau of Labor Statistics said Wednesday. The 10-year Treasury yield fell 13 bps and the U.S. dollar slid to new weekly lows.

Shelter rose 0.4% for the fourth straight month, more than offsetting a 3.6% decline in gasoline. Core services outside of housing or "supercore" fell by 0.042% compared to its three-month average of 0.342%, according to an MNI calculation. Analysts had expected increases ranging from 0.3% to 0.5%.

Keep reading...Show less