A 4% CPI, and the market's heart is about to jump out again.

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CoinWorld News reports that market expectations for the U.S. May overall CPI year-over-year will rise to 4.2% (previously 2.4%), and the month-over-month rate will decrease to 0.5%.
This will be the first time the CPI has broken above 4% since May 2023, and it is also the highest reading since April 2023.
The overall inflation increase is mainly attributed to higher energy costs driven by the Iran war.
However, the core CPI excluding food and energy is also expected to rise to 2.9% year-over-year, with a monthly rate dropping to 0.3%.
Charles Schwab Chief Strategist Sanders stated that inflation issues are more widespread than just energy, indicating that inflation may still be sticky.
She pointed out that investor sentiment is mainly tense due to inflation, and if the data worsens beyond expectations, the stock market will be under pressure.
The Trump administration believes that inflation will decline after the Middle East conflict subsides, but Sanders thinks supply has been severely disrupted, and even if the war ends quickly, oil prices will find it difficult to return to previous lows.
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