Additionally, both core and headline readings may be considered outdated or backward-looking, considering the recent drop in oil prices. WTI crude oil futures have fallen to $70, significantly below the $100+ level seen during the Iran war in March and April. Headline inflation is expected to reach 4.1%, the highest since early 2023, driven largely by energy prices.
“The main question is not whether both the headline and the base headline will increase (they are expected to do so) but how ‘outdated’ these numbers already are,” economist Mohamed A. El Erian, former CEO of Pimco, noted in X.
“These figures come ahead of the recent sharp drop in oil prices, which will result in lower headline inflation and ease some of the pressures on core inflation. The question being debated is to what extent, including whether May will prove to be the highest inflation month.”
Beyond the inflation numbers, keep an eye on the volatility of Strategy’s common stock, MSTR, and preferred stock, STRC, as well as AI names on Wall Street. MSTR shows a well-recognized major bearish pattern (see daily signal). Stay alert!
Read more: For an analysis of current activity in altcoins and derivatives, see Crypto Markets Today. For a complete list of this week’s events, check out CoinDesk’s “Crypto Week Ahead.”
