Fed’s Preferred Inflation Gauges Seen Running Hot
- Another gauge of US prices will likely focus investors again
- Central-bank decisions due in New Zealand and South Korea
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The Federal Reserve’s preferred inflation gauges this week, along with a groundswell of consumer spending, are seen fomenting debate among central bankers on the need to adjust the pace of interest-rate increases.
The US personal consumption expenditures price index is forecast to rise 0.5% in January from a month earlier, the largest advance since mid-2022. The median estimate in a Bloomberg survey of economists expects a 0.4% advance in the core measure, which excludes food and fuel and better reflects underlying inflation.