The headline CPI inflation probably remained negative at -0.8% yoy in May, unchanged from April. A strong negative base effect was mainly to blame. In mom terms, food price inflation is likely to soften on lower vegetable prices. Housing CPI probably remained unchanged as electricity bills stabilised after a formula change in April. Transportation CPI inflation is expected to increase as petroleum prices rose. Core CPI inflation (ex. vegetables, fruits and energy) is expected to head south again, given continuous declines in meat prices and imported disinflation due to a stronger currency.
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