Some analysts predict that core PCE inflation in May will see the slowest increase so far this year, which is good news for policy makers. Falling gasoline prices and generally declining commodity inflation will limit economic growth. However, this may only give the Fed a temporary breathing room, as expenditure categories with sticky inflation continue to bring upward pressure to inflation indicators, and an unfavorable base effect is expected to emerge in the second half of this year. Analysts estimate that the May core PCE monthly rate will slow to 0.10%, the lowest level this year. The core PCE annual rate should drop to 2.6%, the lowest level since March 2021. In addition, the overall PCE monthly rate will barely reach 0.1%, and the year-on-year growth rate will reach 2.6%.