Analysts at TD Securities are expecting a solid 0.2% m/m gain in the U.S. core PCE prices for April, which should translate into a steady 1.6% y/y inflation rate with rounding.

• “Risks are skewed to a softer print, in our view. We look for muted consumer spending after an outsized 0.9% m/m jump in March. The choppiness in the spending data should fade as tight financial conditions and delayed tax refunds recede from view.
• Chicago PMI and the final print of University of Michigan Consumer Sentiment will round out the calendar; the market looks for Chicago PMI to rebound to 54.0 after falling by 5 points in April, while consumer confidence is expected to edge lower to 101.5 in May from 102.4 in the preliminary release.”