Furthermore, both core and headline readings can be seen as outdated or backward-looking given the recent decline in oil prices. WTI crude futures have fallen to $70, well below the $100-plus levels seen during the Iran war in March and April. Headline inflation is expected to hit 4.1%, the highest since early 2023, driven mainly by energy prices.
“The main question is less whether both headline and core go up — they are widely expected to — but rather how ‘old’ these numbers already are,” noted economist Mohamed A. El Erian, the former chief executive of Pimco, on X.
“These figures come before the recent sharp drop in oil prices, which will result in lower headline inflation and ease some of the pressure on the core. The question being debated is how much, including whether May will turn out to be the highest inflation month.”
In addition to inflation numbers, watch for volatility in Strategy’s common stock, MSTR, and preferred stock, STRC, plus AI names on Wall Street. The MSTR is flashing a familiar large bearish pattern (check the daily signal). Pay attention!
Read more: For analysis of today’s activity in altcoins and derivatives, see Crypto Markets Today. For a comprehensive list of events this week, see CoinDesk’s “Crypto Week Ahead.”
