This week: May CPI inflation will break above 4% and ECB will hike on Thurday

For those wondering if markets have more room to fall..

On Wednesday US CPI data for the month of May will be released and having looked at the latest estimates from major firms, it's almost certain headline CPI will break above 4% again for the first time since April 2023. Estimates are 4.1 to 4.2% which will bring Fed hikes back into focus.

Core CPI is also expected to edge up to a seven-month high of 2.9%, which is more concerning since this strips out oil from the headline data. For the month of May alone core CPI could add 0.5% which is obviously alot.

If the Fed needs any help to become more hawkish again, the ECB may inspire them as they will start hiking already on Thursday since inflation has also picked up alot in Europa in recent months.