Eco Week Ahead

Stubborn US Inflation Set to Reinforce Fed’s Go-Slow Approach

  • Likely euro-area inflation jump won’t unnerve ECB officials
  • New Zealand expected to cut rates, South Korea seen holding

Shoppers in San Francisco on Nov. 13. 

Photographer: David Paul Morris/Bloomberg
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US inflation figures in the coming week that are seen showing stubborn price pressures will reinforce the Federal Reserve’s cautionary posture toward future interest-rate cuts.

The personal consumption expenditures price index excluding food and energy — the Fed’s preferred measure of underlying inflation — is projected to have risen by 0.3% in October from September, and by 2.8% from a year earlier, in what would be the largest advance since April.