The May personal income and spending report has offered some encouragement that inflation pressures are easing once again after coming in far too hot in the first three months of the year. The core personal consumer expenditure deflator, a broader measure of inflation pressures than CPI that the Fed prefers to focus on, came in at 0.1% MoM/2.6% YoY. This was expected given the read through from components within the CPI and PPI reports, but after plenty of upside surprises this year, it is a relief. The headline measure (including food & energy) was 0.0% MoM/2.6% YoY, as expected. Looking at the unrounded ... (full story)