Inflation Back on Fed’s Radar as Gauge Highest Since June: Chart

A gauge of U.S. inflation expectations from the Federal Reserve, known as the five-year, five-year forward break-even rate, projects consumer prices will climb at a 1.5 percent annual pace from 2021 to 2026, the highest level in about three months. The jump in expectations comes as central-bank policy makers consider whether to raise interest rates this month for the first time since December. The Fed is looking for inflation to rise to its 2 percent target, saying in its latest Beige Book release Wednesday that price increases “remained slight overall.”

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Inflation Nowhere Near 2% Challenges Central Banks

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