Eco Week Ahead
Fed Is About to Find Out If It Can Afford to Pause Rates
- Annual US core inflation seen rising at still-concerning pace
- BOE may hike by a quarter point; G-7 ministers meet in Japan
Shoppers carry bags in San Francisco, California.
Photographer: David Paul Morris/BloombergThis article is for subscribers only.
US inflation data in the coming week will provide clues about whether the Federal Reserve can pause its series of interest-rate hikes at next month’s meeting.
The core consumer price index, which excludes food and energy, probably increased by 5.5% in April from a year ago after a 5.6% increase a month earlier. The annual advance would suggest just a slight moderation in the pace of underlying price pressures, and that inflation is proving persistent.