Core CPI Seen as More Important Than Headline CPI for the Fed, Timiraos Says

Nick Timiraos, often described as a close observer of the Federal Reserve, said economists expected last month’s decline in energy prices to pull down the overall CPI for June. According to Jin10, he said the Fed was placing greater emphasis on core measures at present. Timiraos said core CPI was expected to be close to May’s 0.21% month-on-month reading. He added that market attention would then shift to PPI and what PPI trends might imply for PCE.