Economics
US Inflation Forecasts Marked a Bit Lower Through 2023 in Survey
- Economists see PCE price gauge averaging 2.4% in early 2024
- Powell says ‘clock is ticking’ to steady price expectations
Excluding food and energy prices, the core measure is seen gradually easing through late 2023.
Photographer: David Paul Morris/BloombergThis article is for subscribers only.
Economists trimmed their US inflation forecasts through the end of next year, likely an encouraging sign for the Federal Reserve as it tries to keep price expectations anchored.
Projections for the year-over-year personal consumption expenditures price index, the Fed’s preferred inflation gauge, were lowered 0.1-0.2 percentage point for each quarter. By the first quarter of 2024, it’s expected to average 2.4%, inching closer to the central bank’s 2% target.