We Expect 13ps for core PCE and 9bps for headline PCE.
Please, find below our translation of CPIs and PPIs into PCE price inflation for May. Compared to our post-CPI translation, the current translation is lower, as both medical and non-market prices were weaker than expected. Finally, our Q2 (QoQ saar) nowcast for core PCE is revised down to 2.1%.
We will update our models again today.
Figure 1. Post CPI and PPI Translation into PCE prices.
