US Inflation Seen Higher, Fed Cuts Later in Survey

Economists see the Federal Reserve’s preferred inflation metric rising at a brisker pace in the near term, prompting policymakers to keep interest rates elevated for longer.

The core personal consumption expenditures price index — which excludes the often-volatile food and energy categories — is seen advancing 2.6% in the first quarter, up from the 2.5% rate expected last month, according to latest Bloomberg survey of economists. They also see overall PCE and the consumer price index increasing at a faster pace this year.