Higher gas prices may have pushed up US CPI inflation

US May CPI data is expected to be released on Thursday (08:30 ET). Standard Chartered anticipate, a 0.5% m/m gain for a 0.0% y/y reading, mainly boosted by increased gas prices.

"The core reading up 0.1% m/m. and this would translate into a 1.7% y/y gain, from 1.8% prior. April's 0.3% print was partly boosted by temporary factors, including a sizeable increase in health-care costs, which may retrace. Lower airfares may be a further damper", acccording to Standard Chartered. 

By contrast, rents are likely to have remained firm. Rents have a lower weight in the PCE index (the Fed's preferred inflation measure), partly explaining the large CPIPCE gap. The Philly Fed business index (10:00 ET), also released on Thursday, may be scrutinised given the large Empire (New York) index's 'miss' earlier this week.