The core Personal Consumption Expenditures index, the Federal Reserve’s preferred inflation measure, climbed at an annual rate of 4.7% in May. That was below economists’ expectations and a slight dip from the 4.9% annual rate in April.
If you were so inclined, you could could see this as evidence that inflation is peaking.
However, stocks weren’t so inclined today, June 30. The Standard & Poor’s 500 fell 0.88% on the day.The Dow Jones Industrial Average was down 0.82%. The NASDAQ Compose dropped 1.33%.And the small cap Russell 2000 slipped 0.66%.
Some traders were so inclined, however. According to the CME Fed Watch tool, the odds of a 75 basis point interest rate increase at the Fed’s July 27 meeting fell to 81% after the data from 96% on Monday.
The next big piece of inflation data is due on July 13 with the release of the June Consumer Price Index. In May the CPI showed an 8.6% annual increase in headline inflation.
