Lates News

The Global Research Department of Bank of America predicts, "We expect that the sharp increase in energy prices will drive the overall CPI in the United States to rise by 0.46% month-on-month in May, with the year-on-year increase rising from 3.8% in April to 4.2%, reaching the highest level since April 2023. At the same time, the core CPI is expected to increase by 0.20% month-on-month and 2.8% year-on-year, showing relatively moderate performance." Bank of America stated, "This forecast reflects our expectations of moderate increases in core commodity prices (0.05% month-on-month), normalization of rent increases, and softening core service prices after excluding rent." The bank further pointed out that the focus of the market on the monetary policy outlook will be the impact of this CPI data on core PCE. Bank of America said, "It is particularly noteworthy that the core PCE inflation rate has been higher than the core CPI since last November. Therefore, the guidance provided by this CPI data on the trend of core PCE is especially important."