[Altos Weekly Traders Edge] CPI Report Shows Inflation Slowdown, Indicating Possible Policy Pause...Details Inside

Roger’s 5 Best Stock Patterns (#2 is shocking) If you want to learn which price patterns to pay extra attention to, make sure you attend the powerful “Pattern Trader” workshop. Roger Scott reveals 5 incredibly accurate patterns and the 2nd one is a shocking discovery. [LEARN THIS TODAY]( By clicking the link above you agree to periodic updates from WealthPress and its partners ([privacy policy]( CPI Report Shows Inflation Slowdown, Indicating Possible Policy Pause in June Weekly Market Overview Looking over the data for May, the Consumer Price Index (CPI) seems to indicate a sustained deceleration in headline inflation. A notable drop from 4.9% in the previous month down to 4.0%, the lowest since April 2021, was observed. However, the core inflation which doesn't take into account the volatile food and energy prices is still holding strong and lingers above the 5% mark. Listening to the chatter from Federal Reserve's high-ups, one could be led to believe that it would require a considerable spike in inflation to sway them to hike interest rates in their June FOMC meeting. Given that headline inflation is generally consistent with predictions, it's likely that this week's meeting will be the first one since March 2022 to not see a policy rate hike. That said, as core inflation continues to hover at worryingly high levels, the chances for another hike at the July FOMC meeting remain on the table. Delving deeper into the report, May's headline CPI showed a marginal 0.1% uptick month-on-month, mirroring expectations. This is a substantial slowdown from last month's 0.4% rise, primarily due to falling energy prices. The current annual headline CPI sits at less than half its June 2022 peak of 9.1%, and the trend appears promising. Annual core CPI, on the other hand, dropped slightly from 5.5% to 5.3%, which is slightly more than anticipated. The monthly core inflation seemed to match expectations, but at 0.4%, it has virtually been stagnant since December of the previous year. The Federal Reserve should pay attention to this lack of movement. If monthly core inflation persists at 0.4% for the remainder of the year, annual core inflation will likely wrap up 2023 nearing 4.5%. Within the realm of core CPI, core goods inflation continued to show strength, increasing to 0.6% month-on-month in May, led by a considerable rise in used car prices. As inventory levels remain low and demand high, we can anticipate continued upward pressure on used car prices in the foreseeable future. Core services inflation remained steady at 0.4% in March. Housing inflation saw a marginal slowdown with both owners’ equivalent rents and shelter inflation climbing 0.5% monthly. Despite the Fed's widely shared expectation of rent inflation gradually subsiding as new leases are inked at more favorable prices, the deceleration is decidedly taking longer to surface than initially forecasted. Core services ex-housing inflation, an area of particular interest to Fed Chair Jerome Powell due to its association with labor market trends, increased slightly from 0.11% in April to 0.24% in May. Though this represents a minor acceleration, it's still beneath the 1Q average, indicating that Federal policy is slowly but surely impacting critical facets of core inflation. Tuesday's inflation report does not portend an imminent eleventh policy rate hike. Fed policymakers have expressed their intent to put the brakes on their rate-hiking cycle in June, allowing them to better analyze incoming economic data. Frankly, the June CPI report doesn't carry enough weight to alter this plan. However, considering the robust state of the labor market and the obstinacy of core inflation, Wednesday's FOMC meeting may be seen more as a "skip" than a "pause". Unless there's a significant negative surprise in both job figures and inflation, we can't rule out a final interest rate hike for July. After a week off, Jeff, Richard and the gang are all back for the Weekly Market Overview. This is a free session we provide for everyone that includes our famous Q&A session that allows everyone in the audience to participate and ask any question about the market they want. These discussions are always interesting, to say the least. We invite you to join us for these sessions live every Tuesday night, but if you can not make it, we provide the videos for you each Weds afternoon so you can see what you missed. This week our topics were... - Market Overview - Mapping Out Key Levels - Review 39 Month MA - Combining Indicators - A Powerful Trend/Volatility Analysis [CLICK HERE TO WATCH THE FREE REPLAY]( Sponsored [You Can’t Escape Inflation So Profit From It Here]( “Inflation is bad” – yeah we all get it. There’s nothing you can do to stop it though. If you can’t beat ‘em – join ‘em. That means learning to leverage inflation to build your wealth instead of devaluing it.[Claim Your Copy Of Our Research Report FREE]( By clicking this link you are subscribing to Conservative Investor News’s Newsletter and may receive up to 2 additional free bonus subscriptions. Unsubscribing is easy [Privacy Policy/Disclosures]( "Excellent, Excellent, Excellent! I've dabbled in the markets for over 20yrs. This is the first time I believe I have a real 'system' to trading. I'm currently up $950 on my first Iron Condor! 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However, the publishers of the Altos Trading Alert Newsletter are not brokers or investment advisers, and do not provide investment advice or recommendations directed to any particular subscriber or in view of the particular circumstances of any particular person. Altos Trading, including its owner, does not participate in any trades issued through the alert services. Subscribers to Altos Trading or any other persons who buy, sell or hold securities should do so with caution and consult with a broker or investment adviser before doing so. Trading securities and options involves risk. Prior to buying or selling an option, an investor must receive a copy of Characteristics and Risks of Standardized Options. Investors need a broker to trade securities and options, and must meet suitability requirements. Past results are not necessarily indicative of future performance. Performance figures are based on actual recommendations. Due to the time critical nature of trading, brokerage fees, and the activity of other subscribers, there is no guarantee that subscribers will mirror the performance of the service. Performance numbers shown are based on trades subscribers could enter based on the trade alerts. Altos Trading, LLC assumes no responsibility for any losses incurred by any individual or entity as a result of trade alerts or strategies taught through courses or coaching services. 7154 W State Street Suite 169 Boise Idaho 83714 USA [Unsubscribe]( | [Change Subscriber Options](