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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.
US DATA
Whilst there weren’t many areas of the report that saw standout strength of a potentially more sustained nature (perhaps aside from vehicle insurance), there are two that could imply marginally hotter pressures from a core PCE perspective. Playing devil’s advocate from a hawkish FOMC member’s perspective though, they aren’t hugely strong arguments to hang on.
- i) Within medical care services, the average of professional and hospital services accelerated slightly to 0.28% M/M after last month’s bounce to 0.24% M/M preceded a strong rise in PCE healthcare of 0.49% M/M which helped underline strong supercore PCE. (PCE healthcare is a separate series but these components are a better predictor than total medical care services which is distorted by health insurance).
- ii) Food away from home (in core PCE but not CPI) accelerated from 0.37% to 0.47% M/M although remained below the 0.62% averaged in Q1.
- On a similar vein, airfares were a larger than expected drag on May CPI at -2.95% (analyst expectations had been grouped between -2% and +2%) but the series relevant for PCE comes from tomorrow’s PPI data.
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.
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