Inflation & Prices
Soft Core Inflation to Bolster Case Against More Fed Tightening
- Rising energy prices to boost headline consumer price index
- Bloomberg Economics sees core index up 0.2% for third month
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A monthly report on US consumer prices due Wednesday is set to show a third month of subdued core inflation, adding to the case against more Federal Reserve interest-rate increases, according to Bloomberg Economics.
Another tepid advance for prices excluding food and energy of 0.2% in August would probably be more important to Fed officials than an energy-driven rebound in the overall consumer price index, which may have risen 0.6%, Bloomberg economists Anna Wong and Stuart Paul wrote Tuesday in a preview of the report.