Inflation & Prices
Economists See US Inflation Running Even Hotter Through Next Year
- Bloomberg monthly results show higher inflation through 2023
- Fed seen raising rates further, one-year recession risk at 65%
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Economists see US inflation running hotter through next year than they did a month ago and recession odds continue to mount against a backdrop of rising borrowing costs.
Projections for the personal consumption expenditures price index -- the Federal Reserve’s preferred inflation metric -- were raised for each quarter of 2023. Still, price pressures are seen cooling sharply over the course of the year. By the final three months, the PCE price index will average 2.8% in the wake of sluggish economic activity and higher interest rates.