May's Producer Price inflation report provided some relief to concerns that tariff-related factors would significantly push up pipeline pressures in the month. Instead, the broader trend in pipeline pressures appears to be slowing rather than accelerating.
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There is little in this report alone to suggest a meaningful gap between CPI and PCE - in other words, the slight downside miss in core CPI doesn't carry a major re-interpretation for PCE via the components. Note April core PCE consensus was 0.24% M/M coming into today, and while this may dip slightly we doubt forecasts will be radically changed (core CPI came in at 0.22% M/M).
Little net change in Fed pricing in the wake of the CPI release.