This week’s marquee economic release, the May US Consumer Price Index (CPI) report, came in hotter than expected at 5.0% year-over-year. Meanwhile, the so-called “core” CPI, which filters out volatile food and energy prices, also printed above expectations at 3.8% y/y. This marks the second consecutive month with hot inflation readings, something the Federal Reserve has said it expected to an extent, but the key question for traders is whether these increasing price pressures are the start of a sustained trend or merely “transitory” readings driven by economic reopening, base effects, and temporary supply chain ... (full story)