The Street's Wary Eye on Inflation

The markets, roiled by inflation jitters, are eagerly awaiting two price reports due out. Here's Action Economics' look at what the data may say

Federal Reserve officials continue to raise a chorus of concern over inflation. After the central bank's chairman, Ben Bernanke, shook up the markets on June 5 with a speech about the danger of rising prices (see, 6/7/06, "No More Hints and Whispers"), other Fed speakers have reinforced the point. On June 12, Cleveland Federal Reserve Bank President Sandra Pianalto said the recent rise in the core consumer price index (which excludes food and energy costs) "exceeds her comfort level," if sustained. Pianalto warned that recent news on inflation was "troubling."

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