The May inflation report, due Wednesday morning, is expected to show consumer prices up 4.2 percent from a year earlier, which would be the steepest reading since April 2023 and a step up from 3.8 percent in April. The timing is awkward.
A renewed oil shock from the overnight strikes threatens to push energy costs higher right as the figure arrives, sharpening the stagflation worry.
It leaves the new Federal Reserve chair little room before his first policy meeting on June 16 and 17.
Sources: TheStreet.
