Central Banks
Fed to Keep Rate Hike on Table This Year After Services Prices Rise
- Closely watched components of CPI post brisk increases
- Officials suggest they’ll extend rate pause at next meeting
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The latest signs of persistent inflation suggest the Federal Reserve will keep the door open to another interest-rate hike this year, even as central bankers emphasize patience ahead of their next meeting.
The so-called core consumer price index, which excludes food and energy costs, increased 0.3% last month, Bureau of Labor Statistics data showed Thursday. Economists favor the core gauge as a better indicator of underlying inflation. The overall CPI climbed 0.4%, higher than expected, boosted by energy costs.