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US Consumer price inflation (CPI) for May was 0.2% as expected. YoY was 2.8% as expected also. However Real average earnings rose 0.3% lower than 0.4% last month and ral average hourly earnings YoY 0.0% vs 0.2% last month

US CPI May

Highlights

CPI

  • CPI MoM  0.2% vs 0.2% expected, prev 0.2% and 2.8% YoY as expected, prev 2.5%
  • YoY highest since January 2012 2.9%
  • CPI ex food and energy 0.2% MoM prev 0.1% and 2.2% YoY as expected. prev 2.1% 

Note: On the gain on YoY The May 2017 -0.1% MoM loss rolled off and was replaced by this month's 0.2%. 

Real Earnings

  • Real average earnings rose 0.3% vs 0.4% last month
  • Real average hourly earnings YoY 0.0% vs 0.2% last month

US CPI May.PNG Table

Earlier in the day OPEC issued it's Monthly Oil Market Report for June of note was it's report on the inflationary move of oil prices agaisnt currencies. 

On average, the US dollar (USD) generally advanced during the month of May confirming the appreciating trend started in mid-April, in which the dollar has either recovered or even surpassed the losses seen in the first quarter.

 OPEC Oil Prices Inflation by currency

  • In nominal terms, the price of the ORB increased by $5.68, or 8.3%, from $68.43/b in April to $74.11/b in May.
  • In real terms, after accounting for inflation and currency fluctuations, the ORB increased to $47.42/b in May, from $42.72/b1 (base June 2001=100) in the previous month.
  • Over the same period, the USD increased by 2.7% against the import-weighted modified Geneva I + USD basket2, while inflation increased by 0.2% m-o-m. 

Tomorrow May PPI is due and will be the last major U.S. economic numbers before the FOMC meeting where they are expected to raise rates.

From the Traders Community News Desk

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