For the first time since June 2020, the Consumer Price Index (CPI) report will be released on the same day as the Federal Open Market Committee (FOMC) meeting.

This sets up a potentially volatile Wednesday for financial markets.

Following three consecutive months of higher-than-expected inflation readings in the first quarter of 2024, April's data showed an easing in price pressures, aligning with forecasts.

The new CPI data will thus be crucial in determining if inflationary pressures are continuing to decline, which could support hopes of reaching the Federal Reserve's 2% target.

This heightens the significance of the May inflation...