CPI data to be released Fed confidence increases

The decline in headline inflation is expected to be driven by weaker energy prices, analysts said, citing data from the American Automobile Association. This shows that the average price of regular gasoline fell by 2.1% month-on-month. The core CPI annual rate, which excludes the volatile food and energy industries, is expected to reach 5.2%. They believe that used car prices will keep the core CPI at a high level. The data, due ahead of the Fed‘s June rate decision, are expected to bolster the central bank‘s confidence that a pause in its historic rate hikes this month makes sense.