Shelter and Services Costs Key Focus in Upcoming May CPI Report

10 June 2024

The upcoming May Consumer Price Index (CPI) report is anticipated to show lower headline inflation, primarily due to cooling energy prices, but core inflation is expected to remain elevated. The Federal Reserve is likely to maintain interest rates in June, waiting for more supportive data before considering cuts later in the year. The May CPI data, scheduled for release at 8:30 am ET on June 15, is projected to show 0.08% headline inflation and 0.3% core inflation. Policymakers will closely monitor trends in shelter costs and services prices, particularly due to their significant impact on inflation.

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