Fed's Preferred Voice: Core CPI More Important Than Headline CPI

According to Nick Timiraos, the Federal Reserve's preferred commentator, on July 14, economists expect lower energy prices in June to pull down the headline CPI. However, core inflation is now more crucial for the Fed. Core CPI is projected to come in near 0.21% month-over-month, similar to May's reading. Market focus will subsequently shift to PPI and its implications for PCE.
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