Inflation & Prices

Fed’s New Inflation Outlook Already Seems Outdated, Analysts Say

  • Latest projections imply substantial pickup in months ahead
  • ‘Fed is unlikely to hike’ again in 2023: Renaissance’s Dutta

Prices of personal consumption expenditures excluding food and energy, the Fed’s preferred measure of underlying inflation, rose just 0.1% in August, and 3.9% from a year earlier.

Photographer: David Paul Morris/Bloomberg
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Federal Reserve officials’ latest inflation projections are already looking too high following the release of new data on consumer prices, suggesting another interest-rate increase this year is even less likely.

Prices of personal consumption expenditures excluding food and energy, the Fed’s preferred measure of underlying inflation, rose just 0.1% in August, and 3.9% from a year earlier, according to Bureau of Economic Analysis figures published Friday.