Inflation & Prices
Fed’s Favored Inflation Gauge Set to Rise by Least in Six Months
- Downside surprises in CPI, PPI data fuel Wall Street optimism
- Central bank projections out Wednesday may already be outdated
Shoppers walk through a grocery store in Washington, DC.
Photographer: Stefani Reynolds/AFP/Getty ImagesThis article is for subscribers only.
The Federal Reserve’s favored inflation gauge is set for the smallest advance since November following two better-than-expected reports on prices out this week.
Bureau of Labor Statistics data on producer prices Thursday showed declines in key categories that feed into the central bank’s preferred metric — known as the personal consumption expenditures price index, which is due later this month. Combined with softer-than-expected consumer price index data published Wednesday, several analysts expect the so-called core PCE gauge, which excludes food and energy, advanced just 0.1% in May.