Vital Signs: Where is Inflation Heading?

Also on tap: industrial production, regional manufacturing activity surveys, and housing starts numbers

September inflation reports should take center stage next week. Minutes of the Sept. 20 monetary policy meeting showed that the Fed expects inflation to gradually decelerate as the economy settles into a slower level of growth and energy prices recede. When it comes to gauging the risks to this relatively benign forecast, the minutes showed more concern about inflation staying above the 1% to 2% comfort zone than a serious breakdown in the economy.

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