According to Jin Shi Data, economists predict that after receiving the May PPI report, the core PCE in May will rise by 0.1% to 0.2% month-on-month, consistent with the Federal Reserve's 2% annual inflation target. Due to base effects, the annual rate of PCE may rise from 2.5% in April to 2.6%.
Pan Sen macroeconomist believes that as inventory decreases, tariffs may force retailers to raise prices in the coming months, meaning that the good news won't last long.