CPI Preview: The Market Expects A Much Cooler Print

In our weekly event preview, we said that while the FOMC on Wednesday is the obvious highlight, Tuesday's CPI print is probably the event of the week in terms of potential vol as it could impact final pricing for the FOMC and impact terminal pricing as well.

Here is what the street expects the BLS will report at 830am tomorrow; first the core May prints:

• Core CPI MoM is 0.4% (0.4% prior)
• Core CPI YoY 5.2% (5.5% prior).