Higher energy prices continue to push headline inflation up. And we do not expect to see a meaningful reprieve in the food space either, especially following recent headlines about beef prices. Our forecast for core calls for a +0.3% m/m uptick in May, which would nudge the year-over-year pace to 2.9% – well below headline but moving in the wrong direction for the Fed. Higher jet fuel prices will continue to add to core services, while tight labor markets which keep a floor under wage growth are limiting core services disinflation. And core goods inflation has been helped in recent months by new and used car prices, ... (full story)