Nick Timiraos: Core CPI is more important for the Federal Reserve

Nick Timiraos said that economists expect the decline in energy prices to lower the overall CPI in June, but core indicators are more important for the Federal Reserve. It is expected that the core CPI will approach the 0.21% monthly rate in May, and then the market focus will shift to PPI and the implications of PPI trends for PCE. AI interpretation: Core CPI, as a core indicator for measuring inflation stickiness, directly determines the pace of the Federal Reserve's monetary policy shift. The fluctuation of energy prices masks the stubbornness of service sector inflation, and the Federal Reserve precisely anchors long-term inflation targets through core data. The stable operation of this indicator has eliminated market panic about inflation rebound and provided solid data support for maintaining the current interest rate level. The market regards core CPI as a key indicator for determining the timing of interest rate cuts, and its trend directly dominates the repricing of asset prices.