US Inflation and Fed Decision: Key Updates and Predictions.

The consumer price index (CPI) is expected to show overall 12-month inflation continued to slow in May but remain way too high for the Federal Reserve's comfort. Economists expect CPI of 4.2%, more than twice the Fed's goal for 2% inflation. The Fed's preferred inflation gauge is the Personal Consumption Expenditures price index (PCE) from the Bureau of Economic Analysis. CPI tends to run hotter than PCE. Higher food away from home prices are expected to erase most of the slowdown in grocery prices. Headline CPI will be held down by lower energy prices.