Economist: Driven by the rise in gasoline prices last month, it is expected that the US CPI in May will rise to a three-year high.

Comerica Bank's Senior Vice President and Chief Economist Bill Adams predicts that the year-on-year increase in US CPI in May will exceed 4%, reaching a three-year high, driven mainly by the rise in gasoline prices last month. The year-on-year increase in core CPI is expected to remain relatively moderate, close to 3%. In May, the rise in prices will surpass the average hourly wage growth, meaning that consumers' real purchasing power will be further eroded. Meanwhile, PPI is also expected to record another significant increase, with a higher rate of increase than CPI, reflecting the impact of the higher weighting of petroleum products, metals, and transportation costs in the producer price basket. In addition, the preliminary consumer confidence index released by the University of Michigan in early June is expected to rebound from the historical low point in May, mainly due to the drop in gasoline prices and the rise in the stock market in the past two weeks.