This week: May US CPI inflation will break above 4% and ECB will start hiking 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 means that even without high oil prices inflation is running hot.

If the Fed needs any help in becoming more hawkish again, the ECB in Europe may inspire them as they will already start hiking this Thursday.