Accelerating US Core Inflation Set to Muddy Rate Picture for Fed
- Core measure to get used-car boost, Bloomberg Economics says
- Israel-Hamas conflict also an upside risk for consumer prices
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A monthly report on US consumer prices due Thursday is set to muddy the picture for Federal Reserve officials trying to decide whether to hike interest rates again, especially as escalating conflict in the Middle East adds uncertainty, according to Bloomberg Economics.
The consumer price index will probably show that headline inflation moderated in September. But core inflation — which excludes food and energy categories — likely crept up to between 3% and 4% on an annualized basis, thanks to a jump in used-car prices, Bloomberg economists Anna Wong and Stuart Paul wrote Wednesday in a preview of the release.